SAV Academy · Sales Cycle
Sales credit note
Purpose
Reduce or reverse a previously issued sales invoice (return, allowance or correction) with a legal credit note that reverses the accounting and VAT impact.
Who uses it
Accountants with the Sales permission.
Prerequisites
- •A posted sales invoice to credit
- •The reason for the credit
Step by step
- 1Open Sales → Credit Notes → New (or start from the original invoice).
- 2Select the customer and, where supported, link the original invoice.
- 3Enter the lines and amounts to credit.
- 4Review the reversed VAT.
- 5Post the credit note.
Key fields
| Original invoice reference | Links the credit to the document it corrects for audit and e-invoicing. |
| Credit lines | The amounts and VAT categories being reversed. |
Practical example
The customer returns 2 of the 10 units: credit note for 200 AED + 10 AED VAT = 210 AED.
Accounting impact
On posting: Debit Sales/Revenue 200; Debit VAT Output 10; Credit Accounts Receivable 210 — the mirror of the original invoice for the credited portion.
VAT impact
VAT output is reduced by 10 AED in the credit note's tax period and shown on VAT reports as a reduction.
E-invoice impact
For UAE e-invoicing the credit note is document type 381 and references the original invoice; it follows the same readiness/PINT-AE path as an invoice.
Warnings
- •A credit note is legal and immutable once posted — do not edit it afterwards.
Common mistakes
- •Crediting more than the original invoice.
- •Forgetting to reference the original invoice.
Tips
- •Always state the reason; it appears in the audit trail.