How do I cancel an invoice I have already sent to a customer?

In BizOS, raise a credit note for the full remaining amount. The invoice becomes cancelled, its balance goes to zero and stock returns, while the original invoice and its number stay on record. An invoice with no payments that is not locked by Tally can also simply be cancelled or edited.

When should I use a credit note instead of editing the invoice?

Use a BizOS credit note when the invoice is locked by Tally sync, when payments are already recorded and the amount must come down, for a sales return, or when the invoice was already reported in a GST return. Before any of that, BizOS lets you edit the issued invoice directly.

Does a credit note put stock back?

Yes. BizOS returns every stock-tracked item on the credited lines to stock at the invoice's branch, so a sales return needs no separate stock adjustment.

What if the customer had already paid the invoice?

The payment stays recorded. Whatever the customer paid beyond what the invoice is now owed becomes their held credit in BizOS, which you can apply to another bill. If you hand cash back, record that separately.

Can I raise more than one credit note against the same invoice?

Yes. A return this week and a price correction next week are two BizOS credit notes. Their combined total cannot exceed the invoice total.

Do credit notes go into GSTR-1 and Tally?

Yes. BizOS reports credit notes in GSTR-1 in the month of their own date, in CDNR for B2B invoices or netted from B2CS, and pushes them to Tally as Credit Note vouchers when invoices are synced. They are not in the monthly accounting export.

Do credit notes have their own numbers?

Yes. BizOS numbers credit notes from their own series, one per branch, set in Settings, Selling, Numbering, with its own prefix and the option of the financial year in the number.

Credit notes

“The customer returned two fans”, or “I billed ₹500 too much, and my CA already has the bill in Tally.” When an issued invoice must change and editing it is no longer right, BizOS corrects it forward with a credit note: its own dated, numbered document that reduces what the customer owes and puts stock back, while the original invoice stays as it was issued.

In short

A BizOS credit note is raised against an issued invoice: sent, partial, paid or overdue. A draft invoice is edited instead.
Four reasons: goods returned, price correction, cancellation, or other.
Credit part of an invoice or all of it. Lines are filled in from the invoice; untick, reduce the quantity or change the price on what you are crediting.
Crediting the full remaining amount cancels the invoice in BizOS; a partial credit reduces what the customer owes.
Stock comes back automatically for stock-tracked items on the credited lines, to the invoice's branch.
BizOS never lets credit notes exceed the invoice total; earlier credit notes count against the limit.
Money already paid beyond what is now owed becomes the customer's held credit in BizOS, ready to apply to another bill. A credit note is not a refund.
Credit notes have their own number series per branch, and appear in GSTR-1 and, if you sync, in Tally.

Credit note, edit or delete?

BizOS lets you edit an issued invoice in full until a payment is recorded, and delete it in most cases (see Invoices). A credit note is the right tool when:

Tally sync has locked the invoice. Your CA has the voucher, so the invoice cannot be edited or deleted; the credit note is how it is corrected.
Payments are recorded and the amount must come down.
Goods came back after the sale: a sales return, with a date of its own.
The bill was reported in a GST return you have already filed. A credit note reduces tax in its own month without rewriting last month.

Draft invoices are different

A draft has never been issued, so there is nothing to correct. Edit it. Raise a credit note appears only once the invoice has been issued.

How do I raise a credit note?

1
Open the invoice
From Invoices, open the issued invoice that needs correcting.
2
Choose Raise a credit note
It is among the invoice’s actions. The dialog opens with the invoice’s lines filled in, so a full return takes two clicks.
3
Keep only what you are crediting
Untick the lines that stand, and lower the quantity or the price on the ones that changed. For a price correction, credit the difference rather than the whole line.
4
Pick a reason and add a note
Goods returned, price correction, cancellation or other. The note is where you record what actually happened.
5
Raise it
The credit note gets its number, the invoice balance drops, and stock returns for any stock-tracked items you credited.

What changes when you save

	Effect
The invoice	What is owed drops by the credit note total. Credit the full remaining amount and the invoice becomes Cancelled. A part-paid invoice that the credit leaves owing nothing becomes Paid.
Payments already recorded	Stay as they are. Any money that is now more than the invoice is owed goes back to the payment as the customer’s held credit.
Stock	Stock-tracked items on the credited lines go back into stock at the invoice’s branch. Free-text lines and services move nothing.
The customer’s balance	Falls by the same amount, so their outstanding and your receivables reports stay right.
The invoice’s history	Nothing is erased. The invoice keeps its number, and the credit note is listed on it.

Handing money back is a separate step

A credit note reduces what the customer owes; it does not take cash out of your drawer. Money left over is held as the customer’s credit, which you can apply to their next bill. See Receipts & advances.

The limits BizOS enforces

Not more than the invoice. All credit notes against an invoice together cannot exceed its total. Try it and you are told how much room is left.
Not zero or negative. A credit note has to be worth something.
Not against a draft. Issue the invoice first.
One at a time. If someone else credits the same invoice while your dialog is open, you are asked to try again rather than both landing.
No order discount on the credit note. Credit each line at the price you are taking off.

Credit notes, GST and your accounts

GSTR-1. A credit note is reported in the month of its own date. Against a B2B invoice it goes to CDNR; against small sales to unregistered customers it reduces B2CS. The original invoice is still reported in its month. See GST billing & GSTR-1.
Tally sync. Credit notes are pushed as Credit Note vouchers, with the original invoice as the GST reference and stock lines where items are synced. Pushing credit notes needs invoices pushed too; credit notes are never pulled from Tally. A series can name its own Tally voucher type (see Document numbering).
The monthly accounting export does not include credit notes. Book them in your accounting package, or use Tally sync. See Accounting exports.
Numbering. Each branch has its own credit-note series, set in Settings → Selling → Numbering, and a credit note is numbered by its own date.
No separate PDF yet. BizOS lists the credit note on its invoice, but does not print a credit-note PDF.

Who can raise one

Anyone who can make invoices can raise a credit note: Owner, Admin, Manager and Office staff. The Accountant can see credit notes but not raise them. A branch-limited member raises them only on their branches’ invoices. See Roles & permissions.

Common questions

How do I cancel an invoice I have already sent to a customer?: In BizOS, raise a credit note for the full remaining amount. The invoice becomes cancelled, its balance goes to zero and stock returns, while the original invoice and its number stay on record. An invoice with no payments that is not locked by Tally can also simply be cancelled or edited.
When should I use a credit note instead of editing the invoice?: Use a BizOS credit note when the invoice is locked by Tally sync, when payments are already recorded and the amount must come down, for a sales return, or when the invoice was already reported in a GST return. Before any of that, BizOS lets you edit the issued invoice directly.
Does a credit note put stock back?: Yes. BizOS returns every stock-tracked item on the credited lines to stock at the invoice's branch, so a sales return needs no separate stock adjustment.
What if the customer had already paid the invoice?: The payment stays recorded. Whatever the customer paid beyond what the invoice is now owed becomes their held credit in BizOS, which you can apply to another bill. If you hand cash back, record that separately.
Can I raise more than one credit note against the same invoice?: Yes. A return this week and a price correction next week are two BizOS credit notes. Their combined total cannot exceed the invoice total.
Do credit notes go into GSTR-1 and Tally?: Yes. BizOS reports credit notes in GSTR-1 in the month of their own date, in CDNR for B2B invoices or netted from B2CS, and pushes them to Tally as Credit Note vouchers when invoices are synced. They are not in the monthly accounting export.
Do credit notes have their own numbers?: Yes. BizOS numbers credit notes from their own series, one per branch, set in Settings, Selling, Numbering, with its own prefix and the option of the financial year in the number.