Credit Notes and Debit Notes may be created either because goods are physically returned or because only the invoice value needs to be corrected.

Refrens lets you decide, for each item, whether creating a Credit Note or Debit Note should also update its stock.

This helps you keep inventory accurate without affecting documents that are created only for discounts, rate differences, tax corrections, or other accounting adjustments.

When Should You Update Inventory?

Update inventory only when goods are physically moving in or out of your stock.

Credit Note

Enable Add to Inventory when goods have been returned by the customer and received back into your stock:

Example:
You sold 10 units to a customer. The customer returns 3 units, and those items come back into your warehouse. Enable Add to Inventory so the available stock increases by 3.

Leave it unchecked when the Credit Note is created only for a discount, price or rate correction, tax adjustment, billing error, or any other monetary adjustment where no goods are returned

Debit Note

Enable Deduct from Inventory when goods are physically returned to the vendor and leave your stock:

Example:

You purchased 8 units from a supplier and returned 2 defective units. Enable Deduct from Inventory so your stock decreases by 2.

Leave it unchecked when the Debit Note is created only for a rate difference, discount adjustment, tax correction, accounting correction, or any other adjustment where no goods leave your inventory

Where Is This Option Available?

The inventory adjustment option appears against each eligible line item while creating or editing:

• Credit Notes
• Debit Notes

The option appears only when:

• Inventory management is enabled for the business
• The selected item is configured as a stock-managed item

Can Different Items in the Same Document Behave Differently?

Yes.

The option is available separately for each line item. This means the same Credit Note or Debit Note can contain:

• Items that update inventory
• Items that affect only the document value and accounting

Example

A Credit Note contains two items:

• Item A: 5 units physically returned
• Item B: Price correction only

Enable Add to Inventory for Item A and leave it unchecked for Item B.

Refrens will increase stock only for Item A, while both items continue to affect the Credit Note total.

How Does This Affect Accounting?

The inventory selection does not change the existing monetary logic of the document.

Whether the checkbox is enabled or disabled:

• The item remains on the document
• The document total is calculated normally
• Taxes continue to apply
• Ledger and accounting entries continue to be recorded

The checkbox controls only whether the item quantity should also move in inventory.

That’s it!

You can now keep stock quantities aligned with actual goods movement while using Credit and Debit Notes for both inventory and monetary adjustments.

Updated on: 23/07/2026