Credit Note PDF Format
Vyapar provides the best credit note PDF formats. Over a million small business entities trust and use the Vyapar App. It helps you build up a professional brand identity. Vyapar credit notes help you comply with all legal requirements.
What Is A Credit Note PDF?
A PDF credit note is a legal document issued to the buyer by the supplier. It is also known as a credit memorandum/memo, which creates a customer credit balance.
Credit memos are a part of the invoicing process, which serve a different purpose. It serves as an acknowledgement that the seller’s account has to be debited with a certain amount. Credit templates offer seamless accounting management.
Suppose the buyer is not satisfied with the products received for any such reasons. The reasons may be the tax charged, quality, or discrepancy of the price of a good in the invoice.
Then, the supplier issues a credit note to the buyer. It is done to notify the buyer that the returned goods have been recorded and credit made.
Why Do You Need A Credit Note?
A credit note is permitted by Section 34(1) of the CGST Act. It is required when an issued tax invoice needs changes to reduce the tax liability. Let us understand the need for credit notes through an example.
Suppose a customer buys goods and concerning it, the supplier creates an invoice for the same. Later, for any reason, if the customer is unsatisfied, they can cancel the purchase. The reason could be anything like the quality of the product, a discrepancy in the amount, etc.
The customer will then ask for an exchange or return the goods and send a debit note. The supplier will then create a credit note using the free format provided by Vyapar. It is an acknowledgment of the buyer’s request. Thus, this is why you need a credit note.
The main reason to issue a credit note is to keep accounting records straight. You cannot edit or delete an invoice once it is issued. You must be wondering why you can’t delete invoices.
The answer is simple; it is illegal to delete the invoice. According to the law, you cannot delete an invoice once issued. The authorities regulate and monitor these actions strictly to protect consumer interests.
When Should You Issue a Credit Note?
As per Section 34(2) of the CGST Act, 2017, a supplier can create a credit note. It is required to be done before or on 30th September. It can also be issued before the date of filing the annual report. A credit note is issued when the supplier needs to cancel an already sent invoice.
According to the GST law, a supplier should issue a credit note under the following situations:-
1. The value specified in the original invoice is higher than the value of goods or services.
2. Whenever the quality of goods or services doesn’t meet the buyer’s expectations, the supplier can reimburse the complete/partial amount.
3. As the tax charged by the supplier on goods or services in the invoice is more than the payable amount.
Difference between a Credit Note and a Debit Note
The major differences between a credit note and a debit note are mentioned below:-
1. A credit note is issued by the supplier, whereas the buyer issues a debit note.
2. A credit note indicates a credit to the other party’s account. On the contrary, a debit note indicates the party’s account has been debited.
3. A credit note can be issued in cases of credit sales. On the other hand, a debit note can be issued in cases of credit purchases.
4. A credit note shows a negative amount, whereas a debit note shows a positive amount.
5. A credit note is updated in the sales return book. A debit note is updated in the purchase return book.
6. A credit note reduces the buyer’s payables in their records. A debit note reduces the seller’s account receivables.
How to create a credit note using the Vyapar App?
There are two methods to create a credit note using the Vyapar App. The first method takes a lot of time to create a credit note. However, the second method is simple and does not take much time.
Follow the given steps to create a credit note using the Vyapar App:-
- Download the Vyapar App and then open it.
- Complete the necessary login process.
- Fill out the details of your company.
- Once all this is done, then click on add more (+) button on the screen.
- Click on the “sale return” option.
- Enter the customer’s details such as name, invoice number, date, etc.
- Next, enter the details of the products that are being returned. It includes the product’s name, the number of goods, etc.
- Save the invoice that has been generated.
The first method is time-consuming. So, the Vyapar software offers you an easy option. You may use it when you want to adjust a credit note to a specific invoice. Follow the steps given below:-
- There is a sale section in the menu. Click on it.
- Click on the sale invoice. You will see the list of all invoices.
- In the search bar, find the invoice with the returned product.
- You can perform the search using many filters. You can use party name-wise, invoice number-wise, date-wise, amounts-wise, or invoice balance.
- The invoice will appear on your screen. Click on the three dots and then the return option.
- You will see that the credit note is already ready with all the required details.
- You can customise the credit note to add any additional detail. You can modify it to meet your needs.
- Make the required changes and save it.
How to Create a Credit Note PDF Format?
To create and generate a credit note PDF format, we will follow the method mentioned below:-
1. On the left side, click on the sale section.
2. Then tap on the “sale invoice” option, and you will see a list of all the invoices.
3. Search for the invoice of the returned product.
4. You can perform a search date-wise, amount-wise, balance-wise, etc.
5. After finding the invoice, click the three dots option on the right.
6. Now click on the “open PDF” option.
7. After doing so, you will find that the credit note is automatically generated in PDF format.
8. Lastly, click on the save option. Your credit note will get generated in PDF format.
Thus, following the simple steps mentioned above, you can create a credit note PDF format in the Vyapar app.
Advantages of Using the Vyapar App for Credit Note Requirements
Send Estimates and Quotations:
The Vyapar App creates a lot of useful documents, including quotations and estimates. The inbuilt feature in the app ensures that you can send estimates and quotations to customers anytime.
It portrays a professional outlook of your business with quick estimates and quotations. The entire process is quick, automated, and error-free.
You even get the feature of converting estimates and quotes into sale invoices. The Vyapar software saves you a lot of time by providing instant quotes.
The GST billing software helps businesses create professional bills and invoices. It helps perform invoicing tasks efficiently. Users can also use the barcode scanner to speed up the billing process.
The invoicing features in the app make billing faster. The “bill-wise payment” option in the Vyapar app is an essential feature. It is simple and easy to link the payments with the sales invoices.
The Vyapar App can be used to generate GST invoices for your customers within minutes. It is efficient in assisting small and medium enterprises. It saves more time in generating accounting reports.
Businesses need to make informed financial decisions to have a consistent growth trajectory. Vyapar offers its customers 40+ business report formats. These business reports can be easily converted into PDF or Excel format.
The Vyapar accounting software increases the efficiency of your business operations. The software also analyses the business details, accounts, and profits accurately. The Vyapar accounting free billing software provides professional balance sheets.
The users can easily and instantly analyze the data using the free GST Invoicing / Billing Software. The customers get to create graphical reports for tracking the sales and expenses of the business.
Valuable Features of the Vyapar app:
Vyapar app provides its customers with the finest inventory management software. The effective credit note template features on the app will help to improve business performance.
You get to keep track of your business sales through business reports. This will guide you to understand how efficiently you have managed Inventory. Credit templates make professional invoicing seamless.
The software gives you statistics on your sales. It further allows you to check the live status of your Inventory.
Automatic Data Backup:
The free billing software of the Vyapar app is 100% secure and safe. The app allows you to secure your data by creating external or local backups.
The data is encrypted with added security and allows you to recover data quickly. The Vyapar app in India comes with hassle-free backup software. Activate the “auto-backup” feature on the Vyapar app. An automatic backup is created every day.
The Vyapar app has encryption software. It allows the users to keep the data accessible to enhance and improve security.
The GST billing software has two invoice themes available for thermal printers. It has twelve invoice themes available for regular printers. The maintenance and sharing of professional invoices format with your clients improve the identity of your business.
This app is efficient for gaining the highest invoice standard. You can also improve the look of your invoice through the various themes available.
You can choose from the best GST invoice formats to meet your accounting requirements. It provides its users with various theme options for thermal and regular printers.
You can set up your online store within a few hours after using the Vyapar software. Using the Vyapar app, users can create a list of all products or services sold to customers online.
It will help you create a catalog of all your products or services. It will further boost your sales online. The Vyapar billing app does not levy any charge on using online store features.
Using the app for the online store feature will help you reduce the wait time at the store. It is one of the best ways to help everyone by providing pick-up services from the online store. It increases not only the sales but also the growth of the business.
What do customers have to say about the PDF credit note generator app?
"Easy to use accounting software."
Vyapar is a user-friendly app that can be modified at your convenience. The features of the app are constantly improving. Vyapar helps its customers to file GST returns quickly. It instantly creates professional customer invoices, credit notes, etc., saving a lot of time.
- Rahul Roy
"Best billing and accounting software."
Vyapar is the best billing software in the market. It has a variety of invoice formats available for free. It has good functionality features concerning tracking purchases and expenses. Overall good GST billing software.
- Sunita Jain
"Efficient for small businesses"
It saves a lot of time as it looks into the accounting part of the business. It gives a professional touch to transactions. It has helped me to focus more on my business.
- Daksh Singh
Frequently Asked Questions
How Do I Create A Credit Note PDF Format?
You create a credit note PDF format in the Vyapar app. You will go to the sales section and tap on the sale invoice option. After that, you will have to select the invoice that needs a credit note.
Now, you will click on the three dots and choose the “Open PDF” option. After you do so, your credit note will be generated in PDF format. Now, save the generated credit note. You have your credit note in PDF format ready.
What is included in a credit note?
Credit notes are official legal documents needed for financial records. So, it needs to be accurate and precise. The following things are to be included while creating a credit note:-
- The date when the credit note is issued.
- The reference number of the customer.
- Details of the supplier, such as name, address, contact, etc.
- The credit note number is also linked to the invoice number.
- Necessary details of your company, such as name, contacts, etc.
- Verified signature of the supplier or their registered authorities.
- The payment terms for credit notes such as cash, credit, etc.
Are Credit Notes Legal?
A credit note is an official legal document, similar to a purchase order or an invoice. The suppliers provide it to customers to notify them.
The credit is being registered to their account for any reason. It is a way to issue refunds for invoices that have already been issued. Thus, credit notes are legal.