> ## Documentation Index > Fetch the complete documentation index at: https://docs.billbasket.app/llms.txt > Use this file to discover all available pages before exploring further. # Credit notes > Issue store credit to a customer instead of a cash refund, track each credit note's remaining balance in the Credit Notes register, and redeem it against a future bill. 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](/customer-guide/daily-billing/returns-and-replacements). ## 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. ### 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. ### 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](/customer-guide/daily-billing/taking-payment) for how payment methods combine on one bill. ## See it on your device A credit note in the register, created from a return refunded as store credit instead of cash — it shows the note number, customer, issue date, **Active** status, and how much of its value is still available to redeem. Credit Notes register showing one active credit note tied to a customer The Credit Notes register with one **Active** note — issued to Priya from a return, showing the full ₹14,999 still available to redeem. Credit Notes register showing one active credit note tied to a customer *Screenshot coming soon — Android tablet view.* ## Try it: Sharma Kirana Store 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. Rajesh opens **Billing → Credit Notes**, filters to **Active**, and sees the new note with ₹500 remaining. 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.