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A credit note is store credit you give a customer instead of handing back cash — most often when they return something. Rather than refund money, you issue a credit note for that amount, and the customer can spend it against a future purchase. BillBasket keeps a running balance on each note and a full register of all of them.
Credit notes are usually created as part of a return — when you pick “Credit note” instead of “Cash” as the refund method. See Returns & replacements.

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Understanding the fields

Each credit note in the register (Billing → Credit Notes) shows:
  • Number — the credit note’s own reference (like CN-000001), separate from the invoice or return it came from.
  • Customer — the party the credit belongs to. A credit note is tied to one customer, so only that customer can redeem it.
  • Issued amount — the original value of the credit note when it was created.
  • Remaining — how much of that value is still unused. This is the number that matters day to day: it goes down each time the note is partly redeemed, and hits zero when fully used.
  • Status — Active (has a remaining balance to spend), Redeemed (fully used up), or Cancelled (voided). The status is driven by the remaining balance, so a note flips to Redeemed automatically once its balance reaches zero.

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Finding a credit note

The register has a search box (by number or customer) and status filter chips (All / Active / Redeemed / Cancelled), so you can quickly pull up just the notes a customer can still spend. Tapping a note opens its journey — where it was issued from and where it’s been redeemed.

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Redeeming a credit note

At billing time, Credit note appears as a payment method in the payment screen (alongside Cash, Card, UPI, and so on). Applying it draws down that customer’s available credit note balance toward the bill — you can cover the whole bill or just part of it, with the rest paid another way. See Taking payment for how payment methods combine on one bill.

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See it on your device

Screenshot coming soon — Android phone view.

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Try it: Sharma Kirana Store

1

Issue a credit note from a return

A customer returns an item worth ₹500 but wants to buy something else later instead of taking cash back. While processing the return, Rajesh Sharma picks Credit note as the refund method — BillBasket issues a ₹500 credit note in the customer’s name.
2

Find it in the register

Rajesh opens Billing → Credit Notes, filters to Active, and sees the new note with ₹500 remaining.
3

Redeem it on a later bill

Next week the customer buys ₹300 of goods. At payment, Rajesh chooses Credit note to apply ₹300 from their balance — the bill is settled and the note now shows ₹200 remaining, still Active.