Why no value for the credit note (inventory on hand)

If a customer had outstanding (unpaid) sales invoices as of the start date, you should have entered them as a way of establishing the starting balance for Accounts receivablde. In that case, there will be an existing invoice for you to reference when posting the credit note. See https://www.manager.io/guides/15718.

I was assuming the customer had already paid and you had refunded money.