# Advance Credit Note
An Advance Credit Note refunds or reverses a customer advance recorded on an Advance Tax Invoice. Use it when a prepayment is returned, cancelled, or reduced before the final sale. It posts to accounts on approve and does not update inventory.
Overview & List View
Go to Sales → Advance Credit Note from the left menu.
The list shows all advance credit notes with credit note number, customer, linked advance invoice, date, amount, payment mode, and status. Use quick filters to view Approved, Draft, Cancelled, or Closed entries. From the list you can create a new advance credit note, open existing ones, edit drafts, or delete draft entries.
> Advance Credit Note uses a dedicated voucher form — not the standard sale bill layout used by sale quotations, orders, and invoices. There are no item lines. The printed description is Advance Refunded.
List columns
| **Column** | **Description** |
|------------|-----------------|
| Id | Internal record ID. |
| Credit Note # | Voucher number. |
| Customer | Customer receiving the refund / reversal. |
| Advance Invoice [Id] | Linked Advance Tax Invoice. |
| Date | Voucher date. |
| Amount | Total including tax. |
| PayMode | Cash, Bank, or Credit. |
| Status | Draft, Approved, Closed, Cancelled, and related statuses. |
TRN and GSTN columns are available in column filter when those registration numbers are used.
List row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft, For Revisal |
| Delete | Draft, For Revisal |
| View | All statuses |
Quick filter tabs
| **Tab** | **Shows** |
|---------|-----------|
| Default | All except Cancelled. |
| Approved | Approved vouchers. |
| Draft | Draft vouchers. |
| Cancelled | Cancelled vouchers. |
| Closed | Closed vouchers. |
Quick Start — Create an Advance Credit Note
1. Navigate
Go to Sales → Advance Credit Note, or open an approved or closed Advance Tax Invoice and choose Create Advance Credit Note from the more menu. Creating from the advance invoice copies customer, tax, and amount details.
2. Create new
Click New to open the voucher entry screen.
3. Fill in details
- Enter Date and select Form Type.
- Enter the Voucher Number (hidden when numbering is auto-generated).
- Choose the Customer and, when refunding a specific advance, pick the Advance Sale Invoice.
- Choose Payment mode and, for Cash or Bank, the Cash Account.
- Enter Taxable Amount, select Tax, and review Tax Amount, Round Off, and Total.
- Select Branch and Employee when applicable.
4. Save
- save — keeps the advance credit note as a Draft.
- Save And Approve — approves and posts the reversal in one step.
- reset — clears unsaved values on the form.
- Cancel — closes the form without saving.
5. After approval
- Advance liability is reversed in accounts on approve.
- Inventory is not updated.
- The printed line description is Advance Refunded.
The form has three sections: Credit Note Details, Payment & Other Details, and Amount & Tax.
Credit Note Details
| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date of the advance credit note. |
| Form Type | Sale type that controls numbering, tax rules, and print layout. Required. |
| Voucher Number | Unique voucher reference. Hidden when bill number is auto-generated for Advance Credit Note. |
| Customer * | Customer whose advance is being refunded or reversed. |
| Customer Billing Address | Primary (or first active) billing address of the selected customer. Choose another address with the zoom button after a customer is selected. |
| Advance Sale Invoice | Source Advance Tax Invoice to reverse. Shown when you have Advance Invoice access. Pick from approved or closed advances for the selected customer. |
Payment & Other Details
| **Field** | **Description** |
|-----------|-----------------|
| Payment mode * | How the refund is paid: Cash, Bank, or Credit. Bank may include payment-instrument options when instruments are configured. |
| Cash Account | Bank or cash account. Required and shown for Cash and Bank (and Digital Wallet when that mode is available). Hidden for Credit. |
| Branch | Branch for the transaction. Shown when multi-branch is enabled. |
| Employee | Sales employee responsible for this voucher. |
| Notes | Remarks printed on the voucher. |
Amount & Tax
| **Field** | **Description** |
|-----------|-----------------|
| Taxable Amount * | Taxable portion of the advance being refunded. |
| Tax | Sale tax type applied to the refund. |
| Tax Rate | Rate from the selected tax. Read-only. |
| Tax Amount | Calculated tax. Read-only; recalculated when taxable amount or tax changes. |
| Total Before Round Off | Taxable amount plus tax. Read-only. |
| Round Off | Rounding difference. Auto-filled when auto-rounding for sales is enabled in Company Settings; can be edited. |
| Total | Total after round off. Read-only. |
> This form does not include item lines. Amounts are entered on the voucher header. On print, a single line Advance Refunded is shown with quantity 1.
Actions & Status
View toolbar actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Finalizes and posts the advance reversal to accounts. | Draft |
| Edit | Opens the voucher for editing. | Draft, For Revisal |
| Delete | Permanently removes the voucher. | Draft, For Revisal |
| Clone | Creates a copy. | All (if permitted; hidden when clone is disabled in user settings) |
| Print | Prints the advance credit note. | All |
| Export | Exports the voucher to Excel. | All |
More menu (⋮) actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Cancel | Cancels the approved or closed voucher. | Approved, Closed, and related posted statuses |
| Add/Update Note | Adds or edits an internal note. | All |
| Master Update | Updates selected header fields. See Master Update. | Approved, Closed |
| Mark As Closed | Manually closes the voucher. | Approved |
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited or deleted. |
| For Revisal | Sent back for changes. Treated like Draft for edit and delete. |
| Approved | Finalized and posted. Advance liability reversed in accounts. |
| Closed | Voucher is fully applied or manually closed. |
| Cancelled | Voucher has been cancelled. |
| Pre approved / Pre Approved Cancelled | Shown in list filters when pre-approval workflow is used. |
Posting note: Advance Credit Notes post to accounts on approve — reversing the customer advance liability recorded by the Advance Tax Invoice. They do not update inventory. Use a regular Credit Note when you are crediting a sale invoice or returned goods.
Master Update
Master Update lets you change selected header fields on an approved or closed advance credit note without reopening the full form. Open the three-dot menu and select Master Update.
| **Field** | **Can be updated?** | **Notes** |
|-----------|---------------------|-----------|
| Date * | Yes | Cannot be set before the accounts closing date. |
| Employee In charge | Yes | |
| Branch | Yes | When multi-branch is enabled. |
| Project | Yes | When project access is available. |
| Customer, payment mode, cash account, tax amounts, total, linked advance invoice | No | Edit the full document while Draft, or cancel and recreate. |
Click Confirm to save or Cancel to close without saving.
View Tabs & Side Panels
When you open an advance credit note in full view (not in a small modal), the right side shows tabbed panels. Click the expand icon on a tab to open the same data in a larger modal.
Top panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Journal Info | Ledger entries posted when the voucher was approved — debit and credit accounts for the advance reversal. Requires journal access. |
Bottom panel (all transactions)
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or cancelled the voucher and when. |
| Attachments | Files uploaded to this voucher. |
Summary, Customer Info, Payments, RP, and Secondary Status tabs are not available on this transaction type.
Best Practices
- Create the advance credit note from the source Advance Tax Invoice so customer, tax, and amount stay aligned.
- Approve promptly so the advance liability reversal appears in accounts, Day Book, and VAT / tax reports.
- Use the same Form Type (sale type) as the original advance when tax and numbering must match.
- Configure numbering for Advance Credit Note on Number Settings and Sale Types before going live.
- Do not use this voucher to credit a normal sale invoice — use Credit Note instead.
FAQ
How is this different from a Credit Note?
A Credit Note reverses a sale invoice or return (and can update inventory). An Advance Credit Note only reverses an Advance Tax Invoice — a prepayment voucher with no item lines.
Does an advance credit note post to accounts?
Yes. On approve, it posts the reversal of advance liability. It does not update inventory.
How do I create one from an advance invoice?
Open an Approved or Closed Advance Tax Invoice → more menu → Create Advance Credit Note. Customer and amount details are copied; date and voucher number are new.
Why is Summary or Customer Info not shown?
Advance credit notes show Journal Info in the top panel. Summary and customer widgets are not available on this transaction type.
Where do advance credit notes appear in reports?
They appear in Day Book, customer statement totals, Bill Wise Tax Wise Sale, and VAT / tax reports (for example UAE VAT 201 Detailed and Bahrain VAT) as a reduction against advances.
Can I print a draft?
Print is available on all statuses. Draft status on the printout can be hidden when bill numbers are auto-generated and Hide Draft Status is enabled in Print Settings.
Does this affect inventory?
No. Inventory posts only on sale invoices, credit notes (when stock is returned), and inventory documents.
Why is Cash Account hidden?
Cash Account is shown only for Cash and Bank payment modes. Credit refunds do not require a cash account.