When to issue a credit note
A credit note reverses an earlier invoice. Common scenarios:
- GST registration change — You recently registered for GST. Invoices issued before
registration were GST-free. Issue a credit note for each affected invoice, then re-issue a new
invoice with GST applied. Link each credit note to its original invoice using the field below.
- Return of goods — Customer returned items; credit reduces the amount owed.
- Error correction — Fix an overcharge, wrong quantity, or wrong price.
- Manufacturer hold-back / rebate — Post-sale rebate or hold-back received from a
manufacturer or supplier. Select a Cost of Sales account on the line; the posting reduces
COGS rather than inflating income (BAS G8 adjustment, not G1).
Select the appropriate reason code below so the credit note is documented correctly for BAS purposes.