## Documentation Index Access the complete documentation index at: https://www.zoho.com/books/help/llms.txt Use this file to discover all available documentation pages before proceeding. # Self-Billed Credit Note ![](/books/images/ue-resources/llm-utility-menu/sparkle-ai.svg) Explore With AI ![](/books/images/ue-resources/llm-utility-menu/dd-arrow.svg) * [Open in ChatGPT (opens in new tab)](https://chatgpt.com/?prompt=Analyze+the+content+of+https%3A%2F%2Fwww.zoho.com%2Fbooks%2Fhelp%2Fvendor-credits%2Fself-billed-credit-notes.html+and+understand+it+thoroughly+so+I+can+ask+questions+about+it.) * [Open in Claude (opens in new tab)](https://claude.ai/new?q=Analyze+the+content+of+https%3A%2F%2Fwww.zoho.com%2Fbooks%2Fhelp%2Fvendor-credits%2Fself-billed-credit-notes.html+and+understand+it+thoroughly+so+I+can+ask+questions+about+it.) * ![Copy for LLM](/books/images/ue-resources/llm-utility-menu/copy.svg) Copy for LLM * [![View as Markdown](/books/images/ue-resources/llm-utility-menu/md.svg) View as Markdown (opens in new tab)](/books/help/vendor-credits/self-billed-credit-notes.md) A **Self-billed Credit Note** (SBCN) is a document that you create on behalf of a vendor to reduce or cancel the amount payable for a previously issued self-billed invoice. When the payable amount needs to be reduced or the transaction is cancelled, you must create a self-billed credit note instead of a vendor credit. **Scenario:** Zylker has a self-billing agreement with a foreign vendor. After raising a self-billed invoice, Zylker discovers that the delivered quantity was lower than invoiced. They create a self-billed credit note to reduce the payable amount, keeping the records compliant with their self-billing arrangement. ## When to Create a Self-Billed Credit Note You can create a self-billed credit note when: * The original self-billed invoice contains an excess amount. * The quantity or value of goods or services needs to be reduced. * A transaction needs to be partially or fully cancelled. * A subsequent adjustment reduces the amount payable to the vendor. **Note:** If you need to increase the amount payable for a self-billed invoice, create a [Self-Billed Debit Note](https://www.zoho.com/books/help/bills/self-billed-debit-notes.html) instead. * * * ## Vendor Credit vs Self-Billed Credit Note In Zoho Books, both vendor credits and self-billed credit notes can reduce the amount payable to a vendor. The transaction you create depends on whether you received a vendor credit from your vendor or you need to issue a self-billed credit note on behalf of your vendor. * A **Vendor Credit** is a document you record when your vendor issues a credit against a bill. * A **Self-Billed Credit Note** is a document you create on behalf of your vendor to reduce the amount payable for a self-billed invoice. * * * ## Enable Self-Billed Credit Notes Before creating self-billed credit notes, you must enable it in the settings. Here’s how: * Go to **Settings**. * Navigate to _Organization settings_, and select **General** under _Setup & Configurations_. * In the _General_ tab, under _Select the modules you would like to enable_, select **Self-Billed Credit Notes**. * Click **Save**. Self-billed Credit Notes will be enabled for your organization. * * * ## Create a Self-Billed Credit Note ### From Vendor Credits You can create a self-billed credit note from the **Vendor Credits** module. It is recorded as a vendor credit and can be applied to a self-billed invoice or a bill, or refunded if required. * Go to _Purchases_ and select **Vendor Credits**. * Click the dropdown next to _\+ New_, and select **Create Self Billed Credit Notes**. * In the _New Self Billed Credit Note_ page, fill in the following details: Fields Description **Vendor Name** Select the vendor on whose behalf this self-billed credit note is being raised. **Location** Choose the location you want to associate with this transaction. **Credit Note #** The credit note number is auto-generated based on the selected _Transaction Series_ associated with the location. Click the **Gear** icon to configure whether you want to enter self-billed credit note numbers manually or generate them automatically. **Order Number** Enter an order number for reference, if applicable. **Vendor Credit Date** Select the date on which this self-billed credit note is issued. By default, the current date is auto-filled. **Subject** Enter a subject or brief description for this self-billed credit note. **Accounts Payable** Select the accounts payable account to which this self-billed credit note should be recorded. **Warehouse Location** Select the warehouse location associated with the items in this self-billed credit note. The available warehouse locations are based on the selected location. **Selection Type** Select how you want to add items to the self-billed credit note. Choose **Single Location** to select items from one location, or **Multiple Location** to select items from multiple locations. **Item Tax Preference** Select whether the line item rates in the self-billed credit note are **Tax Inclusive** or **Tax Exclusive**. **Discount Type** Choose how you want to apply the discount **At Transaction Level** or **At Line Item Level** in the self-billed credit note. **Bulk actions** Choose this option to update multiple line items at once. Select _Bulk Update Line Items_ from the dropdown, select the required line items, and then click **Update Reporting Tags** to update the reporting tags for the selected line items. You can also select **Show All Additional Information** to select a project and associate reporting tags for each line item individually. **Item Details** Enter or select the items from the dropdown for which you want to record the credit. **Account** Select the expense or purchase account to which each line item should be recorded. **Quantity** Enter the quantity of items being credited in this self-billed credit note. **Rate** The rate is automatically filled based on the rate set for the item. Enter a custom rate manually if required. **Tax** Select the applicable tax rate for the line item. **Amount** Displays the calculated amount for each line item based on the quantity and rate. **\+ Add New Row** Click this option to add a new line item row. **\+ Add Items in Bulk** Select this option to add multiple items at once. In the _Add Items in Bulk_ popup, select the items, enter their quantities, and click **Add Items**. **Sub Total** Displays the sum of all line item amounts before discounts and adjustments are applied. **Discount** Enter a discount amount or percentage to reduce the total credit amount. Click **Apply After Tax** to apply the discount after the tax is calculated. **Discount Account** Select the account used to track the discount applied to this self-billed credit note. This field appears when a discount is entered. **Adjustment** Enter an adjustment amount to adjust the total. Use a (**+**) sign to increase the total and a (**\-**) sign to reduce it. Click **Configure Account**, select an adjustment account to record the adjustment amount, and click **Update**. **Total** Displays the final credit amount after applying taxes, discounts, and adjustments. **Notes** Enter any internal notes or remarks you want to record against this self-billed credit note. **Attach File(s) to Self Billed Credit Note** Click **Upload File** to attach supporting documents to the self-billed credit note. You can upload up to 5 files, with a maximum size of 10 MB per file. * Click **Save as Draft** to save the self-billed credit note as a draft, or click **Save as Open** to record it as an open credit. ### From a Self-Billed Invoice You can also create a self-billed credit note from a self-billed invoice. Here’s how: * Go to _Purchases_ and select **Bills**. * Select the self-billed invoice for which you want to create a self-billed credit note. * Click the _More_ icon and select **Create Self Billed Credit Note**. * In the _New Self Billed Credit Note_ page, the self-billed invoice details are pre-filled. Review and update the fields as needed. * Click **Save**. A self-billed credit note will be created for the self-billed invoice in **Closed** status, and the vendor credit will be automatically applied to the self-billed invoice. The status of the self-billed invoice will change to **Partially Paid** or **Paid**, depending on the credit amount. ### From a Bill You can also create a self-billed credit note directly from an existing Bill when you need to reduce the amount payable as a part of self-billing arrangement. Here’s how: * Go to _Purchases_ and select **Bills**. * Select the bill for which you want to create a self-billed credit note. * Click the _More_ icon and select **Create Self Billed Credit Note**. * In the _New Self Billed Credit Note_ page, the bill details are pre-filled. Review and update the fields as needed. * Click **Save**. A self-billed credit note will be created for the bill in **Closed** status, and the vendor credit will be automatically applied to the bill. The status of the bill will change to **Partially Paid** or **Paid**, depending on the credit amount. * * * ## View Self-Billed Credit Notes The Self-Billed Credit Notes are listed within the **Vendor Credits** module along with vendor credits. A self-billed credit note icon appears next to the document number to help you distinguish self-billed credit notes from regular vendor credits. * Go to _Purchases_ and select **Vendor Credits**. * Select the desired self-billed credit note that you want to view. * * * ## Filter Self-Billed Credit Notes You can use the custom view in the vendor credits list to filter and view only self-billed credit notes. Here’s how: * Go to _Purchases_ in the left sidebar and select **Vendor Credits**. * Click the view dropdown at the top of the list (it shows the current view name, such as _All Vendor Credits_). * Select **Self-Billed Credit Notes** from the list of available views. The list will now display only self-billed credit notes, making it easy to review and manage them separately from regular vendor credits. **Note:** Advanced search does not support filtering exclusively for self-billed credit notes. Hence, use the self-billed credit notes custom view to filter self-billed credit notes records. * * * ## Self-Billed Credit Note Reports Self-Billed Credit Notes follow the behaviour of vendor credits and are included in the [Payables Reports](https://www.zoho.com/books/help/reports/payables.html) in Zoho Books. You can use these reports to review the credit amounts recorded through self-billed credit notes alongside your regular vendor credits. To view Payables Reports: * Go to **Reports** in the left sidebar. * Under _Report Category_, select **Payables**. * Under _Payables_ select the report you want to view. The following payables reports include self-billed credit note data: * Vendor Balance Summary * AP Aging Summary * AP Aging Details * Vendor Credit Details * * * ## Self-Billed Credit Note PDF Self-Billed Credit Notes use the **Vendor Credits** template. When you generate the PDF, Zoho Books changes the document title on the printed PDF to **Self-Billed Credit Note** to comply with self-billing regulations. The remaining layout and details follow the vendor credits template.