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Bullet Guides

Create Credit Note

A refund is money given back to a customer for goods or services returned, while a discount is a reduction in the price of goods or services. In Bullet, you can use a single feature – the Credit Note – to handle both refunds and discounts for money coming in (invoices) and money going out (bills). The process is identical for both invoices and bills. You can see the process of creating credit note in Bullet below:


Here is the guide for creating a credit note against an invoice:

Step 1: Access the Invoices Section

  1. Go to the Hub drop-down menu in the top-left corner.
  2. Select Accounts and Payroll.
  3. On the Accounts and Payroll homepage, look at the left-hand menu.
  4. Click on Invoices.
  5. Select Overview from the drop-down menu.

Step 2: Select the Invoice and Create Credit Note

  1. On the Overview page, you will see a list of all your created invoices.
  2. Click on the specific invoice for which you want to create a refund or discount.
  3. Look for the right-hand menu that appears and click the Create Credit Note button.

Step 3: Fill in Credit Note Details

  1. You will be sent to the “Create Credit Note” page. Most fields will be pre-filled based on the original invoice.
  2. The key modification you need to make is to adjust the Amount to reflect the exact value of the discount or refund you are issuing.
  3. Click Review, check the details, and then click Save.

Step 4: Apply the Credit Note

After saving, your credit note is created, and you will see “What to do next” options. You must now apply the credit note as either a discount or a refund:

  • To apply as a refund: Click Apply this credit note as refund.
    • This will take you to the Client Refund screen.
    • Enter the refund Amount (which should match the credit note amount).
    • Add the Date of Refund.
    • Pick the Bank account you are paying the refund from.
    • Under the title “Select which invoice this credit note is for,” click the checkbox next to the original invoice to link the refund.
    • Click Review.
    • Review the final summary screen and click Save.

Step 5: Verification

The credit note is now successfully applied and the refund is recorded.

  • You can return to the Invoices Overview screen.
  • You will see the new credit note listed as a transaction.
  • The status of the credit note will be Allocated, confirming the transaction has been created and applied as a refund to your client.