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Credit Notes (Avoirs)

A credit note is a document that partially or fully reverses a finalized invoice. In Swiss accounting, credit notes are the correct way to correct a billing error, grant a refund, or cancel an invoice that has already been posted to the ledger.

When to use a credit note​

SituationAction
Customer was overchargedCreate a partial credit note for the difference
Invoice must be fully cancelled after postingCreate a full credit note for the total amount
Goods returned by customerCreate a credit note matching the returned items
Settlement discount granted after invoicingCreate a partial credit note for the discount amount
Draft invoices

If the invoice is still in Draft status, simply edit or delete it — no credit note is needed. Credit notes are only for Finalized invoices that have already been posted to the ledger.

Creating a credit note​

  1. Open the original invoice (Invoices → [invoice number])
  2. Click Create Credit Note
  3. Review the pre-filled line items — all lines from the original invoice are copied
  4. Adjust quantities or amounts if this is a partial credit note
  5. Set the credit date (usually today, or the date agreed with the customer)
  6. Click Save and Post

The credit note is immediately finalized and posted to the ledger. There is no Draft state for credit notes.

Ledger effect​

Full credit note​

A full credit note exactly reverses the original invoice entries:

Original invoice (finalized):
Debit   1100  Accounts Receivable    CHF 1,081.00
Credit  3000  Revenue                CHF 1,000.00
Credit  2200  VAT Due (8.1%)         CHF    81.00

Credit note:
Debit   3000  Revenue                CHF 1,000.00
Debit   2200  VAT Due (8.1%)         CHF    81.00
Credit  1100  Accounts Receivable    CHF 1,081.00

The net effect on the ledger is zero — the original invoice is fully reversed.

Partial credit note​

For a CHF 200 correction on a CHF 1,000 invoice:

Debit   3000  Revenue                CHF  185.20
Debit   2200  VAT Due (8.1%)         CHF   14.80
Credit  1100  Accounts Receivable    CHF  200.00

The original invoice remains open for the remaining CHF 881.00.

Applying a credit note to an invoice​

After posting, you can link the credit note to the original invoice:

  1. Open the credit note
  2. Click Apply to Invoice
  3. Select the original invoice from the list
  4. Confirm — the credit note reduces the outstanding balance of the invoice

If the credit exceeds the invoice balance, the remainder can be applied to a future invoice or refunded directly.

Refunding cash to the customer​

If the customer has already paid and you owe them a refund:

  1. Create and post the credit note (as above)
  2. Process the refund payment (bank transfer or other)
  3. Record the refund in Gäld:
    • Go to the credit note
    • Click Record Refund
    • Enter the payment date and bank account
Debit   1100  Accounts Receivable    CHF 1,081.00  (clears credit)
Credit  1020  Bank                   CHF 1,081.00  (cash out)

VAT on credit notes​

Credit notes automatically reverse the VAT of the original invoice. If the original invoice had multiple VAT rates, each rate is reversed proportionally.

The reversed VAT appears in your next VAT report as a deduction from output VAT — you do not need to make any manual adjustment.

See Swiss VAT and VAT Report for more details.

Listing and searching credit notes​

Credit notes appear in Invoices with type Credit Note and a negative amount. You can filter by type using the Type dropdown in the invoice list.

Each credit note shows:

  • The linked original invoice number
  • The credit amount
  • The posting date
  • Application status (applied / unapplied / partially applied)