---
title: Create a credit
description: This article explains how to create a credit in ParagonERP. Credits can be created manually, from an invoice, an RMA or a receipt.
---

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1. [ParagonERP](https://support.paragon-erp.com/?hsLang=en)
2. [Transactions](https://support.paragon-erp.com/transactions?hsLang=en)
3. [Credit](https://support.paragon-erp.com/transactions?hsLang=en#credit)

September 9, 2026

# Create a credit

### **Introduction**

This article explains how to create a credit in ParagonERP. Credits can be created **manually**, from an **invoice**, an **R****MA** or a **receipt**.

The credit module is based on Paragon's standard [transaction screen](https://support.paragon-erp.com/how-do-transaction-screens-work?hsLang=en).

### **Step-by-step instructions:**

- #### **Step 1: Open the credit module**

Open the **credit** module by selecting it in the right hand navigation bar or in the **more **menu.

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20module-jpg.jpeg?width=670&height=306&name=Credit%20module-jpg.jpeg)

 

 

- #### **Step 2: Add a new credit**

This is the list view of the credit module. To add a new credit, click **add new credit**.

![](https://support.paragon-erp.com/hubfs/Knowledge%20Base%20Import/edbsnb18ffa89179c75f659614fdf91b89bb02e6f725aa6bc694c9dac550a443e4ad55fee56e3a6c316f740c9370bb850fce5-2-3-1.png)

- #### **Step 3: Select how you want to create the credit**

We are starting with **scenario #1**, i.e. we will create a **manual** credit.

![](https://support.paragon-erp.com/hubfs/Knowledge%20Base%20Import/edbsn6bfdd436012e324c795b22bb7c77528c8717f599cda32554adafa1b83cb83ef8c8cd0ebcd13698c3d1b16c6da6301055-2-3-1.png)

- #### **Step 4: Enter in general information**

Select the company name from the **drop down menu**.

Once the company is selected, it will auto-populate all the addresses from the customer file.

Note that the credit will not have a transaction number until the credit is saved. Once a transaction number is assigned, it will replace #####.

![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-11-28%20071606-png.png?width=670&height=358&name=Screenshot%202024-11-28%20071606-png.png)

Select the date by clicking on the **calendar icon** and selecting the appropriate date.

![](https://support.paragon-erp.com/hubfs/Knowledge%20Base%20Import/edbsnf131dd35572599f178e07356e8abd8b1b09653eff18831a1ba56c2af9e48b4723d73ea0420455697eef119ebd5857a26-2-3-1.png)

 

- #### **Step 5: Enter business terms**

Enter information in the business terms line by clicking on the field and typing in the correct information or selecting it from the **drop down menu**.

Note that the business terms attributes will be slightly different based on how your system was configured.

 

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20attribute%20panel-jpg.jpeg?width=670&height=353&name=Credit%20attribute%20panel-jpg.jpeg)

- #### **Step 6: Add products to your credit**

To add a product or line item to your credit, click **add product** in the lower left hand side of the line item area.

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20add%20lines-jpg.jpeg?width=670&height=354&name=Credit%20add%20lines-jpg.jpeg)

Select all the items you would like to add to your credit by checking off the boxes on the left. Once all items have been chosen, click the **accept** button. Otherwise, you can click **cancel**.

![](https://support.paragon-erp.com/hubfs/Knowledge%20Base%20Import/edbsn0009ddebf3a77d0e47a2190854e2a15fca9d227d46fb55638956f44b4523f06e1fb852a61248397dfc70541cfdb6ce12-2-3-1.png)

#### **Add notes**

If necessary, add any relevant notes. These notes won't affect anything in the system. They can be used for reminders or internal communication.

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20notes-jpg.jpeg?width=670&height=359&name=Credit%20notes-jpg.jpeg)

#### **Canceling a credit**

A credit can be canceled at any point *before it is saved* by clicking **cancel **in the upper left hand corner.

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20cancel-jpg.jpeg?width=670&height=355&name=Credit%20cancel-jpg.jpeg)

 

- #### **Step 7: Save the credit**

Once you have filled in all the relevant information click **save **in the bottom right hand corner.

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20save-jpg.jpeg?width=670&height=359&name=Credit%20save-jpg.jpeg)

Once the credit is saved, it will automatically be assigned a transaction number and a temp status.

![](https://support.paragon-erp.com/hs-fs/hubfs/Credit%20number%20and%20status-jpg.jpeg?width=670&height=356&name=Credit%20number%20and%20status-jpg.jpeg)

#### **I've created my credit, now what?**

Once a credit has been created you can proceed in a number of ways using the **action** button in the bottom right hand corner.

The following actions are available while your credit is in **temp **status:

![](https://support.paragon-erp.com/hs-fs/hubfs/image-png-Aug-25-2025-12-37-08-9595-PM.png?width=118&height=182&name=image-png-Aug-25-2025-12-37-08-9595-PM.png)

The following actions are available when your credit is in **issued** status.

![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202025-08-25%20083806-png-1.png?width=116&height=184&name=Screenshot%202025-08-25%20083806-png-1.png)

#### **Edit a credit**

If you want to modify an existing credit, click on the **edit **icon and make your changes.

 

![](https://support.paragon-erp.com/hs-fs/hubfs/Edit%20button-png.png?width=32&height=33&name=Edit%20button-png.png)

 

### **Scenario #2: Create a credit from an invoice**

Select how you would like to create the credit. In this case, make sure the **invoice **tab is selected.

It is selected when **invoice **is highlighted in green.

![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-11-28%20095255-png.png?width=670&height=296&name=Screenshot%202024-11-28%20095255-png.png)

Select the invoice you want to use to create the credit by checking the corresponding box on the left. Note that once an invoice is selected, only invoices for that specific customer will show on the screen.

To deselect an invoice, uncheck the box.

![](https://support.paragon-erp.com/hs-fs/hubfs/Knowledge%20Base%20Import/DocsDisplay-Feb-02-2024-09-20-11-6435-PM-1-1-3-1.png?width=540&height=280&name=DocsDisplay-Feb-02-2024-09-20-11-6435-PM-1-1-3-1.png)

You can choose one or multiple invoices for that customer to create your credit. Click on the **accept **button to add lines from those invoices to your new credit.

![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-12-04%20083705-png.png?width=87&height=40&name=Screenshot%202024-12-04%20083705-png.png)

If the credit is created from an invoice with no units left to credit, a blocker notification will be displayed and the credit will remain in temp status.

![](https://support.paragon-erp.com/hs-fs/hubfs/image-png-Feb-25-2025-10-37-58-3502-PM.png?width=670&height=204&name=image-png-Feb-25-2025-10-37-58-3502-PM.png)

ParagonERP will also issue a blocker if your credits are worth more (or are for a higher quantity) than the applied invoices.

![](https://support.paragon-erp.com/hs-fs/hubfs/image-png-Oct-09-2025-06-58-03-6701-PM.png?width=670&height=301&name=image-png-Oct-09-2025-06-58-03-6701-PM.png)

 

Follow the instructions for a manual credit memo to finish creating your credit from an invoice.

 

### **Scenario #3: Create an credit memo from an RMA**

Select how you would like to create the credit. In this case, make sure the **RMA** tab is selected. It is selected when **RMA** is highlighted in blue.

![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-11-28%20085319-png.png?width=670&height=297&name=Screenshot%202024-11-28%20085319-png.png)

Select the RMA you want to use to create the credit by checking the corresponding box on the left. Note that once an RMA is selected, only RMAs for that specific customer will show on the screen.

You can create your credit from one RMA or multiple RMAs.

Follow the rest of the instructions for creating a credit manually to finish creating your credit from an RMA.

 

### **Scenario #4: Create a credit from a receipt**

Credits can also be created from a receipt. If goods are returned from your customer, when they are received into your warehouse, you can choose to create a credit note directly from the receipt.

From the main **add new credit **screen, click on **receipt. **It is selected when **receipt** appears in green.

**![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-11-28%20074556-png.png?width=670&height=297&name=Screenshot%202024-11-28%20074556-png.png)**

Choose the receipt that you want to use for the credit. Note that once a receipt is selected, only receipts for that specific customer will show on the screen.

![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-11-28%20074816-png.png?width=670&height=298&name=Screenshot%202024-11-28%20074816-png.png)

You can create your credit from one receipt or multiple receipts.

Follow the rest of the instructions for creating a credit manually to finish creating your credit from a receipt.

 

 

 

### **Related articles:**

\- [Add attachments to transactions](https://support.paragon-erp.com/how-to-add-attachments-in-paragon?hsLang=en#How_to_automatically_generate_PDF_attachments)

\- [Add discounts to transactions](https://support.paragon-erp.com/add-discounts-to-transactions?hsLang=en)

\- [Create an Invoice](https://support.paragon-erp.com/creating-an-invoice?hsLang=en)

 

 

 

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