Issue a credit note

A credit note cancels all or part of an invoice that's already been sent. Use one to fix a mistake or to give a customer money back.

When to use a credit note#

• You charged the wrong amount or the wrong customer.
• A customer returned something or cancelled part of an order.
• You agreed to a discount after sending the invoice.

Sent invoices can't be edited, because their numbers must stay in sequence for your tax records. A credit note keeps the record straight.

Create one#

1. Open the invoice and click More → Issue credit note.
2. Choose Full to cancel the whole invoice, or Partial and pick the lines and amounts.
3. Add a reason. Your customer sees it.
4. Click Issue credit note.

What happens to the money#

Invoice status	What the credit note does
Unpaid	Reduces what your customer owes
Paid	Leaves a credit on the customer's account, or [[Refund a customer

Note: credit notes get their own numbering, starting with CN-. You'll find them under Invoices → Credit notes.