• EH Lim

How to record a credit note?

MoneyWorks uses the reverse sales invoice (negative invoice) method to record a credit note. It converts the sales invoice into a credit note by clicking on the reverse button on the sales invoice transaction.


Upon converting, it changes the quantity into a negative value, multiplying the unit price to derive a credit amount (negative) if you are using products or services (A negative net amount if you are using a ledger account instead). Of course, you can also manually enter a negative quantity instead of clicking the reverse button to create a credit note.


Credit Note (a.k.a. Negative Invoice)
Credit Note

The credit note debits the sales and credit accounts receivable, which later offset the outstanding invoice.


You have an option of offsetting the credit note with an invoice from the Command menu (via a contra method) or when receiving payment from the customer. Both work, but offset during received payment is preferable (The contra feature is not for contra between a creditor and a debtor owing, but the credit note and outstanding invoice of the same debtor).


Credit Note (a.k.a. negative invoice) shared the same running sequent number as the sales invoice. You may manually change the reference number but try keeping the system-generated number to reduce confusion or mistake.


You can use the invoice form to print the Credit Note by amending the formula of the form tile from a simple text field to an if( ) statement:

if(Transaction.gross < 0, "Credit Note", "Invoice")


It prints as a 'Credit Note' when the invoice gross is smaller than $0 and 'Invoice' when it is $0 or greater. It helps reduce the number of forms you require to manage, ease the operation and reduce mistake made.


MoneyWorks, as a hybrid system, allows sharing of data in the cloud and uses its feature-rich desktop app. Book a demo to find out how to use MoneyWorks to manage your business finance.

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33 Ubi Avenue 3 #07-50 VERTEX (Tower A) Singapore 408868 

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F: +65 6337 2616

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