How to create a sales credit in Xero

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How to create a sales credit in Xero

Need to create a credit for a customer? There are a couple of ways to achieve this.

First, if the credit is for an unpaid invoice, you can create the credit note directly from the invoice.

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Find the invoice in Sales and drill into it and on the Invoice Options menu, select “Add Credit note”.

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Here you’ll see how it immediately creates a credit note using the details of the original invoice. You will only need to change the date and click “Approve”.

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After approval, it will take you to the invoice showing the credit note applied.

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If you want to send a copy of the credit note to your customer. Click into the Credit Note.

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And then choose how you want to send it.

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What if the credit note is for an invoice that has already been paid or for something not related directly to an invoice?

In Sales, select the dropdown menu by New and choose “Credit Note”.

 

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Fill out the details and select “Approve”.

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You’re now given the option to allocate this credit to an existing invoice. You can select “Cancel” if you don’t want to allocate it to any invoices and you want to show it separately on your customer’s statement.

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Next, it will take you to the credit note and you can now send a copy to the customer.

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You can make changes by clicking the “Credit Note Options” on the right side.

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You can allocate the credit by selecting “Credit Note Options” and selecting “Allocate Credit”.

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This will bring all the outstanding invoices from the customer up and allow you to allocate the credit.

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That’s how to create a sales credit in Xero.

 

About the Author

Annette Ferguson 

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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