A credit note allows you to reduce the amount owed on an invoice without deleting or editing the original line items. Credit notes are useful when:
  • You want to offer a discount after an invoice has already been issued.
  • A client has partially paid (e.g., paid 1,000/1,000 / 1,300 invoice) and you want to waive the remaining $300.
  • You need to correct an error on the invoice without altering the original record.
If you’re returning money the client has already paid, record a refund instead.

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Creating a credit note

1

Open the Invoice

Go to the Update Invoice page for the invoice you want to adjust.
2

Add a Credit Note

Click Waive or Credit Amount below the invoice totals (see highlighted section in the screenshot below). The button is greyed out when the invoice is still a draft or has nothing owing.
Waive or Credit Amount button
3

Enter the credit note details

Clicking Waive or Credit Amount will display a screen with the invoice amount automatically populated in the credit note line items.
Credit Note form
4

Review the updated invoice

After saving, the invoice summary will update to include a credit note line as displayed in the following screenshot.
Invoice with credit note applied
5

Email the Updated Invoice

Once the credit note has been applied, you can send the updated invoice to your client which will include the credit note amount.