Returns and refunds are normal in business. But with VFD, you can't simply "delete" a receipt. Here's how to handle refunds properly.

Why You Need Credit Notes

Once a VFD receipt is transmitted to TRA, it's permanent. You cannot delete or modify it. Credit notes are the official way to reverse sales.

A credit note:

• References the original receipt number
• Shows the refund amount
• Adjusts VAT accordingly
• Gets transmitted to TRA

When to Issue Credit Notes

1. Customer returns goods – Full or partial refund
2. Pricing error – Wrong price charged
3. Damaged goods – Customer received defective items
4. Service cancellation – Service not delivered

How to Issue Credit Notes in Tawala

Step 1: Find Original Receipt

Go to Sales → View Receipts and search for the original receipt.

Step 2: Create Credit Note

Click "Issue Credit Note," select items to refund, and enter amounts.

Step 3: Submit

Review and submit. The credit note transmits to TRA automatically.

Best Practices

• ✅ Document why each credit note was issued
• ✅ Issue promptly, don't delay
• ✅ Train staff on proper procedures
• ❌ Never give refunds without a credit note
• ❌ Don't issue excessive unexplained credit notes

Reconciliation

Your Z-Reports show gross sales minus credit notes, so you only pay VAT on net sales.