Because Fynlo does not yet include a dedicated Credit Note module, refunds and invoice corrections must be recorded through the Journal Entry tool inside the Accounting module.
A credit note works like a negative invoice — it reduces customer receivables and reduces revenue. The Journal Entry ensures your accounting books stay accurate and compliant.
Understand the Accounting Principle (Debit & Credit)
A refund or credit note affects two accounts:
| Action | Account Type | Example Account | Journal Action | Effect |
|---|---|---|---|---|
| Decrease Revenue | Revenue | Sales / Service Income | DEBIT | Reduces income |
| Decrease Receivable | Asset | Accounts Receivable | CREDIT | Reduces what the customer owes |
This paired entry ensures accurate double-entry bookkeeping.
How to Create the Journal Entry (Credit Note)
Follow these steps using the Journal Entry screen:
Step 1: In the left menu, go to Accounting. Then, click Journal Entry
Step 2: Fill Out the Header Fields
Journal Date: The date of the refund (e.g., 11/25/2025)
Currency: Choose the correct currency (e.g., USD – US Dollar)
Step 3: Enter the Journal Lines
You must create two lines: one DEBIT and one CREDIT.
Line 1 — Debit (Decrease Revenue)
Account: Sales/Service Income
Description: e.g., “Credit Note for Invoice #123 – Price Adjustment”
Type: DEBIT
Amount: e.g., 100.00
Line 2 — Credit (Decrease Accounts Receivable)
Account: Accounts Receivable
Description: same as Line 1 for clarity
Type: CREDIT
Amount: 100.00
Step 4: Verify the Entry
At the bottom:
Total Debit = Total Credit
Both must match exactly for the journal entry to save.
Step 5: (Optional) Add an Attachment
Attach supporting documents such as:
refund approval
communication with the client
corrected invoice notes
Step 6: Click Save
This completes the accounting entry.
Summary
Using the Journal Entry module, you can properly record refunds, corrections, and credit notes while maintaining accurate accounting balances.