Credit Notes
Credit notes reduce or cancel the amount a customer owes. Use credit notes for refunds, billing corrections, or service credits without voiding the original invoice.When to Use Credit Notes
| Scenario | When to Use |
|---|---|
| Billing error | Customer was overcharged |
| Service issue | Compensation for downtime or problems |
| Partial refund | Customer canceled part of their order |
| Full refund | Customer canceled entirely |
| Price adjustment | Retroactive discount applied |
Creating a Credit Note
- Navigate to Invoices and select the invoice
- Click … menu → Create Credit Note
- Choose credit type:
- Full credit - Credit entire invoice amount
- Partial credit - Specify a custom amount
- Add a reason (required for audit trail)
- Click Create
Credit Note Statuses
| Status | Description |
|---|---|
| Draft | Created but not finalized - can still edit |
| Issued | Finalized and sent to customer |
| Applied | Applied to customer’s credit balance |
| Voided | Canceled before processing |
Issuing a Credit Note
Once reviewed, issue the credit note:- Open the credit note
- Click Issue
- Choose whether to send email notification
- Click Confirm
Applying Credits
After issuing, you can apply the credit to the customer’s balance:- Open the issued credit note
- Click Apply to Balance
- Confirm
Viewing Credit Notes
For a Specific Invoice
- Navigate to Invoices → select invoice
- View Credit Notes section
All Credit Notes
- Navigate to Invoices → Credit Notes tab
- Filter by status, date, or customer
Best Practices
Document Reasons
Always include clear reasons for audit trails.
Review Before Issuing
Use draft status to review before finalizing.
API Reference
For programmatic credit note management, see the Credit Notes API.Next Steps
Refunds
Learn about refund processing.
Invoices
Return to invoicing overview.