Create credit notes from returns and refunds in your Shopify store

Credit notes are tax documents that verify you have processed the refund and are sending money back to the payer’s account. For customers, they serve as accounting documents that provide supporting evidence for the money arriving in their bank accounts.

In this article, we'll explain how Sufio automatically creates credit notes and walk you through the available settings.

• Automatic creation of credit notes
  • Incremental creation mode
  • Cancellation mode
• Manual creation of credit notes

To have Sufio automatically create credit notes for you, you need to enable the Multiple documents per order creation mode:

1. In your Sufio account, go to the Settings → Documents page.
2. In the Document creation modes section, click on the Multiple documents per order button.
3. You may turn the Create cancellation credit notes toggle on or off to select the type of credit notes the app should create.
4. Click on the Update settings button at the top of the page to apply the changes.

With the updated settings in place, Sufio will start creating multiple documents that accurately reflect changes made to the order in your online store.

The updated settings also impact how Sufio creates these additional documents, and two more choices become available to the user: Incremental credit notes or Cancellation credit notes.

When the Create cancellation credit notes toggle is turned off, Sufio will only create credit notes for returns and refunds.

If an order is edited and new items are added, an additional invoice with the newly added items will be created.

The advantage of this setting is that for each change to the order, an additional invoice or credit note is created, and together they represent the status of the order. Typically, this also means fewer documents are created than when using the cancellation credit notes.

When the Create cancellation credit notes toggle is turned on, for every change made to an order—such as a return, refund, or edit—Sufio will create a cancellation credit note that will cancel the original invoice in full.

It will then create a new invoice that will reflect the state of the order.

The advantage of the setting is that after each change to the order, both you and your customer end up with one summary invoice that reflects the latest state of their order.

You also have the option to manually create credit notes from existing invoices.

1. In your Sufio account, go to the Documents → Invoices page.
2. Open an invoice for which you want to create a credit note.
3. In the invoice view, click the More → Create credit note button.
4. By default, a credit note contains all items from the invoice. To create a partial credit note, delete the item lines you do not want to be included, or adjust the item quantities.
5. Click the Save button to apply the changes.

The credit note is now created and saved in your account. You can click Send credit note to send it to the customer.