Create a credit note
A credit note always starts from the invoice it corrects.
Before you start
Section titled “Before you start”You need Credit Note Add and Edit, and Invoice View on the invoice. The Credit Note permission is not granted to every role by default — the Administrator role has it, and a custom role needs it added under Roles. The invoice must already be issued: a draft or a voided invoice offers no way to raise one.
- Open the issued invoice and select its Credit notes tab.
- Select New credit note.
- Check the Contact, which starts as the invoice’s own, and choose a Reason: Reversal, Goods returned, Allowance, Over-invoiced or Other. A short line under the picker explains what each one means.
- Check the Credit note date, which opens on today.
- Add lines for what is being credited, the same way you would on an invoice.
- If you chose Other, describe why in the Remark — it is required for that reason and nothing else.
- Select Save draft.
What happens next
Section titled “What happens next”The credit note is saved as a draft. It has no number yet — the record shows Not issued yet — and it has no effect on the invoice’s balance until it is issued. You can keep editing it, or delete it, for as long as it stays a draft.
Rules to know
Section titled “Rules to know”- The currency and tax rate come from the invoice and cannot be changed.
- The most you can credit is the invoice’s own amount, less any credit notes already raised against it — not the amount still unpaid. You can raise a credit note against an invoice that is already paid in full.
- A draft credit note can still be printed, headed as a draft, before you decide to issue it.