Create a credit note
Issue a credit note for an invoice and apply it against what your customer owes, so both your books and theirs stay honest.
A credit note is how you give money back on an invoice — a wrong quantity, a returned item, a goodwill discount. It reverses revenue properly instead of deleting the past.
Create the credit note
Open the invoice and choose Create credit note. The credit note is created as a draft carrying the invoice's details, ready for you to adjust the items, the amounts, or the reason. Send it like any other document when it is right.
Until you apply it, a credit note sits with its own status. Applying it is what moves money.
Apply it to an invoice
On the credit note, choose Apply to invoice and pick the invoice it offsets. A few rules keep the books honest:
- The invoice must belong to the same customer as the credit note.
- You cannot apply more than the invoice has outstanding.
- Once applied, the credit note's status becomes Applied, and the invoice's remaining amount falls exactly as if a payment had come in.
The invoice then settles through its normal states — partially paid, paid — and your reports show the credit note reversing revenue rather than pretending the sale never happened.
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