When is a Credit Note created?

A Credit Note is created after an Invoice is issued when a customer returns products, reports defects, or qualifies for a refund or discount adjustment.
It acts as proof of the reduction in the amount owed by the customer.

In Vtiger CRM:

• It is generated from an Invoice when items are returned or billing corrections are required.
• It helps update stock automatically, record refunds, and maintain accurate financial records.
• It ensures consistency between invoices, inventory, and accounting systems.