Credit Notes

Credit Notes let you issue credits against client billing. Users may also call them credits or credit memos.

Navigation

• Credit notes: /credit-notes
• Settings: /settings/credit-notes

What a Credit Note Contains

A credit note can include:

• Credit note number.
• Account/client.
• Related invoice.
• Line items.
• Reason.
• Amount.
• Status.
• Approval state.

Credit Note Fields

For exact required fields, accepted values, relationships, and validation rules, see Credit Notes Field Reference.

Field	Meaning
Credit number	Human-readable credit note identifier.
Account	Customer receiving the credit.
Invoice	Optional invoice the credit applies to.
Reason	Scope change, billing error, goodwill, or other.
Amount	Credit value.
Status	Draft, pending approval, approved, issued, applied, or void.

Common Workflows

Create a Credit Note

1. Open Credit Notes.
2. Create a new credit note.
3. Select an invoice, or select an account for a standalone credit.
4. Add line items and a reason.
5. Save as draft or submit for approval.

Issue and Apply

1. After approval, issue the credit note.
2. Apply it to the correct invoice for the same customer.
3. Confirm the remaining balance.
4. Unapply if it was applied to the wrong invoice.
5. Void with a reason if it should not be used.

Approve a Credit Note

Credit-note approval supports:

• Approve.
• Reject.

Credit-note approval does not support return. If the credit should not be issued, reject it.

Settings

Configure Credit Notes at /settings/credit-notes:

• Enable the module.
• Prefix, next number, and whether numbers can be edited.
• Document title.
• Require a reason.
• Auto-apply to the source invoice.
• Approval and approvers.
• Default reason.

Rules and Controls

• A credit note should have a clear reason.
• Credit notes may require approval before being applied.
• Credits should only be applied to invoices for the same customer.
• Approved or applied credit notes should not be edited without the correct reversal workflow.

Related Docs

• Invoices
• Credit Notes Field Reference
• Approvals
• Settings and Administration