Creating Credit Notes
Issue refunds and credits against invoices
Credit notes are used to refund or credit a client. A credit note can be linked to the invoice it corrects, and its PDF shows that invoice's number and date, the reason, the amount credited and the VAT credited.
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 Go to Sales → Credit Notes
- 2 Click Credit Note
- 3 Pick the Original Invoice: its client and lines are filled in for you (or leave it empty and choose a client)
- 4 Untick the lines you are not crediting and change quantities or prices for a partial credit
- 5 Write the Reason for Credit
- 6 Click Create
Numbering
Leave Credit Note Number empty and the next number in your credit note series is used when you save, as on an invoice. Set the prefix and the starting number under Company Settings → Documents. Credit notes made through the API take their number from the same series.