Returns & Credit Notes

When a customer returns goods or an already-posted invoice needs to be reduced, the correct tool in Odoo is a Credit Note, not deleting the invoice.

Path: Accounting → Customers → Invoices → open the posted invoice → Add Credit Note

1. Open the original Posted invoice from the customer invoices list.
2. Click the Add Credit Note button at the top of the invoice.
3. Choose the refund method: Full Refund to cancel the whole invoice, or Partial to adjust quantities.
4. Set the Reason, refund date and journal, then click Reverse.
5. For a partial refund, Odoo creates a draft credit note; edit the quantities on the lines to match only the returned goods.
6. Verify the 15% VAT is applied on the lines so output tax is reversed correctly.
7. Click Confirm / Post; a reversing entry lowers revenue and the VAT payable.
8. Optionally click Register Payment to refund the customer or reconcile the credit against other invoices.