Creating Credit Notes
Issue refunds and credits against invoices
Credit notes are used to refund or credit a client. They reduce the amount owed and are linked to the original invoice.
When to Use Credit Notes
Full Refund
Cancel an entire invoice
Partial Refund
Reduce the amount owed
Pricing Error
Correct a mistake on an invoice
Returns
Credit for returned goods
Creating a Credit Note
- 1 Navigate to Documents → Credit Notes
- 2 Click Create Credit Note
- 3 Select the original invoice
- 4 Choose full or partial credit
- 5 Add the reason for credit
- 6 Click Save
Accounting Impact
Credit notes automatically create journal entries to reverse the original invoice, keeping your books balanced.