Credit Notes

I have just recently created several credit notes. I find it very annoying that these credit notes are “automatically” deducting from unpaid/new invoices.
This causes confusion for myself and my customers.
Can i prevent this auto allocation ???

Have you read the Guide Use credit notes for customer returns and refunds | Manager
It clearly states the process, but in particular

“The credit amount will be applied to the original sales invoice. If the customer has not paid or only partially paid the invoice, the balance due on the invoice will be reduced by the credit note amount. If a credit note is applied to a fully paid sales invoice, the credit note amount will be credited to the customer’s subaccount in Accounts receivable . Any credit balance will be automatically applied to the next (or the oldest existing) sales invoice for that customer.”

This “Note” in the Credit Note guide is possibly out dated as Cash Sales can now be recorded “in the customer’s subaccount in Accounts receivable”.

A credit note should not normally be used if the original transaction was a cash sale, because the sale will not have been recorded in the customer’s subaccount in Accounts receivable .

You have two choices. But you did not specify the nature of the credit notes, so it is not possible to recommend one or the other:

  • Designate the sales invoice to which the credit note applies when creating the credit note. That happens automatically when a credit note is copied from a sales invoice.
  • Use special accounts to lodge credits unrelated to an invoice. See

The Guide does not say a credit note cannot be used. It only says one should not normally be used if the sale was a cash sale. It is still true that sales made without sales invoices are not processed through Accounts receivable.