Customer invoices and adjustment notes

Choose the customer document and apply eligible credits safely

Use Customer Transactions to record customer invoices, additional charges and credit notes. Use Customer Receipts to record cash, and the application controls to match cash or eligible credits to open document lines. These are different events: a credit note is not a cash refund, and applying a credit does not itself return stock.

This guide is for authorised sales and accounting users in the selected company and permitted locations. Start here to choose the document, then use the linked field references for individual controls. Follow the company's approval and fiscal process before changing a saved or submitted document.

Choose the customer document

The customer Debit Note increases receivables. Do not copy the vendor note convention: in this release, ordinary vendor Debit Notes and Credit Notes both reduce payables. Use the vendor document guide for that distinction.

Prepare the company customer and tax design

Confirm the company, location, open dates, customer status, customer currency, credit policy and receivable/revenue accounts. For goods, prepare item/UOM, warehouse/bin and required lot, serial or expiry identities. For tax, review the customer-side resolved tax code and its chargeable and withholding components; the vendor default is separate.

Agree the document currency and the rate into functional currency before entry. A bank's currency is chosen later on the receipt; it need not be the invoice currency where the receipt application supports cross-currency settlement. See tax and currency applications.

Create and check an invoice

1. Open Customer Transactions in the intended company and select the new-document action. Choose Invoice, location, Transaction Date, Ledger Date and the correct customer.
2. Review customer/address defaults, payment terms, currency and the functional FX rate. Enter the customer's external reference and an understandable description.
3. Add the service or eligible item lines. Check quantity, UOM, unit price, permitted discount, tax code and account mapping. Link the actual SO Line only when the invoice belongs to that order.
4. For inventory lines, complete the application's allocation controls using the permitted location, warehouse/bin and tracking identities. The allocations must agree with the parent line; do not invent an identity to clear validation.
5. Check base, chargeable tax, gross, withholding and net receivable in both displayed currencies. Review invoice and receipt fields and stocked-invoice controls.
6. Save once, retain the generated transaction number and reopen the document. Inspect the saved lines, balances, stock processing and linked journal state. Complete the separate authorised fiscal process where applicable.

If the response is uncertain, locate the generated transaction before retrying. A timeout, printable invoice or saved header does not prove that all accounting, inventory or authority processing completed.

Create a customer debit note

Use a Debit Note for an authorised additional customer charge, not as an interchangeable reversal. Identify the original invoice, the reason, amount and tax treatment first. Select Debit Note in Customer Transactions, retain the original-document reference where applicable, and review the positive quantities and permitted price. Discount editing on notes is restricted.

Check the increased customer balance and the note's own revenue/tax accounting after saving. A debit note can be a target for an eligible customer credit application. For Pakistan FBR documents, the correction also requires the applicable original fiscal reference and country controls described below.

Create a customer credit note

1. Establish the credit reason: price correction, cancellation or return. Agree the amount and tax treatment against the original document.
2. Select Credit Note in Customer Transactions and the same customer. Use the intended location, dates and document currency; do not convert a saved invoice merely by changing its type.
3. Review negative quantities, permitted prices, restricted discounts, tax and the original-reference requirements. For returned inventory, use the supported allocation and stock treatment as a separate control.
4. Save once and reopen the credit. Check its negative net/open amount and available credit, plus its actual journal and stock outcome where relevant.
5. If the credit is to settle an open invoice or debit note, use Apply Credit. If cash must be returned, use the separate supported receipt-refund process and treasury authorisation.

An inventory credit does not replace the physical return/inspection decision. A commercial credit application moves open-item balances; it does not itself receive goods into a warehouse.

Apply customer credit to an open document

Open the saved eligible credit line's Apply Credit controls. Choose the exact target Invoice or Debit Note line for the same company and customer. Standard customer credit applications require the same document currency. Review the target's open amount and the source credit still available before entering a positive application amount.

Apply once, reopen the applications and compare both documents' remaining balances. For example, applying USD100 credit to a USD1,000 invoice leaves invoice USD900 and source credit zero if the credit was exactly USD100 and there are no other settlements.

Understand foreign currency credit restrictions

A USD credit against a USD invoice is a same-currency application even if the company's functional currency is PKR. If their document rates differ, a functional exchange difference may still arise. Cross rate 1 does not mean there is no FX accounting.

A EUR credit against a USD invoice is different: the standard customer credit endpoint rejects the currency mismatch in this release. Do not change the saved currency, manipulate an API, invent a cash receipt or post a balancing journal merely to force the application. Ask the accounting owner to choose an approved, supported correction route. Cross-currency cash settlement is explained separately in receipt and payment applications.

Record cash and apply the receipt separately

Save the receipt against the actual customer and bank, in that bank's currency. Confirm amount, dates and the receipt's functional FX rate. A saved receipt initially has an unapplied balance; it does not automatically settle an invoice.

Use the eligible receipt's Select Transaction Line and application controls to identify the intended open invoice/debit line. Review Net Cash Applied, Receipt Applied Amount, currencies, dates and any settlement withholding. Apply once and check the invoice residual, receipt residual, protected withholding records and application/FX journals. Read the worked tax and currency cases before a taxed or foreign-currency application.

Correct or unapply without duplicating the transaction

After correction, reconcile the original and resulting records, including zeroed/replacement journals and any remaining stock/tax consequences. Never replay the original import as a correction.

Follow the Pakistan FBR correction controls

Where the company's effective Pakistan FBR profile applies, preserve the original accepted authority invoice reference. Customer credit/debit notes have their own source-reference rules; the accounting note and the electronic correction are not the same event.

For a credit note using accounting applications as its fiscal source, the applicable lines must be fully applied and refer to the permitted single original document. Do not mix manual fiscal references with accounting applications. A reference-only correction uses its supported fiscal-reference controls, not an invented settlement. A Pakistan FBR debit note references its permitted original customer invoice. Submitted credit-note applications and protected source/reference details are locked.

Check the current electronic-invoicing guidance and approved company process before submission. The FBR digital-invoicing provisions are the official starting point for applicable requirements; this guide does not select a statutory rate or replace a jurisdiction-specific decision.

Reconcile the customer trail

Compare the invoice, debit/credit notes, cash receipts, applications and customer statement at the same company/location, date cutoff and currency. Tie the open items to the receivable control after relevant journals are posted. Reconcile chargeable tax and withholding separately; for goods, also reconcile quantities, valuation and COGS.

Use report parameters, GL transaction and close controls and inventory reconciliation. An unapplied receipt or credit can be genuine; investigate it rather than forcing it to zero.

Resolve a blocked customer application

Continue with fields imports and related tasks

Invoice and receipt fields, stocked sales and credit controls, vendor invoices and notes, tax and currency applications, customer setup, sales bulk imports and POS returns.