Record a credit note

Creating a credit note in Gimbla is a straightforward process. Credit notes are incredibly useful for maintaining accurate accounting records when you need to refund a customer or apply a credit balance to an existing unpaid invoice.

🧭 Navigate To

Finance → Sales → Invoices

👣 Walkthrough

For this example, we will create a credit note for a total of $22 ($20 base + $2 tax). We will then refund $10 directly to the customer and apply the remaining $12 to an existing unpaid invoice.

1 Navigate to your Invoices dashboard and click the Add Credit Note button.

Gimbla Invoices dashboard highlighting the Add Credit Note button

2 Enter the details for the credit note (e.g., $20 subtotal). Click the Create button to confirm and generate the document.

Gimbla Add Credit Note screen showing item details, tax application, and total amount

3 Return to your main Invoices list. You will now see two distinct records:

  • The original invoice, which remains marked as Unpaid.
  • Your newly generated credit note document.
Gimbla invoices list displaying the original unpaid invoice alongside the newly created credit note

4 Click on the new credit note to open its details. At the top of the screen, you will see two primary action buttons: Add Refund and Apply to Invoice. We will use both.

View Credit Note screen in Gimbla highlighting the Add Refund and Apply to Invoice buttons

5 First, let's process a partial refund. Click the Add Refund button. A pop-up window will appear where you can enter the exact amount you are sending back to the customer. In this case, enter $10 and click Add.

Gimbla Add Refund to Customer pop-up window showing a $10 cash refund entry

6 Next, let's apply the remaining balance to their outstanding invoice. Click the Apply to Invoice button. Select the relevant invoice from the list and enter the remaining $12 to apply the rest of the credit. Click Save.

Gimbla Apply To Invoice screen showing the allocation of the remaining $12 credit balance

7 Take a look at the credit note now. Because the full $22 has been utilised, its status automatically updates to PAID. At the bottom of the document, you will see two history entries detailing exactly how the funds were allocated. You can click on either of these entries to jump directly to the related document for easy tracking.

Fully settled credit note in Gimbla marked as PAID with a clear breakdown of the refund and invoice application

🖇️ Understanding Credit Notes, Refunds, and Debit Notes

Properly managing customer credits and refunds is essential for maintaining accurate accounting records and healthy client relationships. Here is a quick breakdown of how these financial documents work:

  • What is a Credit Note? A credit note (sometimes called a credit memo) is a document issued by a seller to a buyer. It serves as official proof that the amount owed by the buyer has been reduced. This is standard practice when goods are returned, items arrive damaged, or an accidental overcharge occurs.
  • Refunds vs. Invoice Credits: Once a credit note is created, you have two ways to resolve it. You can issue a direct Refund (sending money back to the customer's bank account or cash drawer), or you can Apply to Invoice, which uses the credit balance to instantly pay down an existing or future invoice.
  • Supplier Returns (Debit Notes): What happens when the roles are reversed, and a supplier owes you a refund for a bill? The exact opposite of a Credit Note is called a Debit Note. Debit notes function exactly the same way in Gimbla, but they are created under the Purchases/Bills section. They seamlessly reduce the amount you owe to a supplier, ensuring your Accounts Payable stays perfectly balanced.