Configure Debit & Credit Notes in Odoo 15 Accounting

Overview of Debit and Credit Notes in Odoo 15

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Odoo 15 Accounting provides tools to issue credit and debit notes that reflect corrections or updates to invoices. A credit note is typically used to reduce the amount of an issued invoice (such as for returns or discounts), while a debit note increases it (such as for additional charges).

These notes ensure transparency and help maintain accurate financial reports, while also simplifying compliance during audits.

How to Create a Credit Note in Odoo

1. Navigate to Invoicing > Customers > Invoices
2. Open an existing invoice you wish to credit.
3. Click Add Credit Note in the top menu.
4. In the popup:
   • Select reason (e.g., returned goods, overbilling).
   • Choose full or partial refund.
   • Set reversal date.
5. Click Reverse.

A draft credit note will be generated and can be posted, just like an invoice.

How to Create a Debit Note in Odoo

• This increases the original invoice amount and reflects the additional cost.

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Difference Between Credit Note and Refund

• Odoo allows linking both documents to the original invoice for traceability.

Tracking Adjustments in Journal Entries

Every credit or debit note automatically updates accounting journal entries. You can:

• View them under Accounting > Journal Entries.
• Track related documents from the note’s smart button.
• Reconcile with payments or refunds for transparency.

How to Reconcile Credit/Debit Notes

Common Use Cases for Credit/Debit Notes

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Permissions Required to Create Notes

Only users with the Billing or Accounting roles can issue debit and credit notes. Make sure roles are configured in Settings > Users & Companies.

Audit Trail and History

FAQs

Q.1. What is the difference between a credit note and a refund in Odoo?
A: A credit note adjusts the invoice, while a refund returns money to the customer.

Q.2. Can I create a partial credit note?
A: Yes, Odoo lets you select only specific lines or amounts to reverse.

Q.3. When should I use a debit note?
A: When you need to charge a customer extra after issuing the invoice—for example, for extra hours or fees.

Q.4. Are these features available in Odoo Community edition?
A: Basic credit and debit notes are supported in both Community and Enterprise editions, but Enterprise has more automation options.

Q.5. How are these notes reflected in financial reports?
A: Odoo updates journal entries instantly, and you’ll see the effects in your aged receivables, general ledger, and audit reports.