Adjustment notes, refunds and credit notes can be issued in different ways from a practical perspective. The client/customer may elect to receive a refund in cash or a cheque immediately or a credit might be created on the customers account. It depends on your regulatory requirements and also on your organisation’s policy and procedures with respect to returns. Here’s an example:

1. Enter an invoice as you normally would for an item or service you are refunding (or providing a credit for) except change the sign(s) to negative for all line items in the invoice- in amount field if this is a service invoice, or quantity field if this is an item invoice .
2. Apply a payment if required if you a refunding immediately or leave as unpaid if you are providing/receiving a credit refund (i.e. not a cash refund).
3. When you are saving the invoice (and/or payment is applied and saved), you can select Adjustment Note from the invoice type pick to create a PDF invoice which you can Print, Save or Email as required.

Note: The above steps apply to both sale and purchase invoices.