Credit invoice

A credit invoice (or a credit note) is a statement detailing a refund or credit to an invoice. For example, you may issue a credit invoice if a customer asks for a refund or if you decide to give a customer a credit for any reason. When you issue a credit invoice, the software uses the information from the credit invoice to update your clients’ account, alter your accounts receivables and adjust your sales tax records accordingly.

To be more specific, credit invoice should be issued in the following more common scenarios:

  • When the original invoice amount is incorrect, and needs to be amended before payment is made (for example, if the total is for £800 but was meant to be £80, you could issue a credit invoice for £720).
  • When a customer has requested a refund after they have paid the invoice.
  • When a customer has partially paid an invoice but has requested to pay less than the full amount (for example, if something didn’t meet their expectations, or if they disagree with the amount of VAT).
  • When a customer requests a discount after an incorrect amount is issued on a service. For example if after you issue a credit invoice to correct the invoice amount to £80, the customer requests 25% off for poor service. A refund would then need to be issued for £20.
  • Basically, any major change to the amount on the invoice requires issuing a credit invoice (credit note).

Credit invoice is creating like regular invoice with one major exception: All amounts on the invoice are negative.

There are two possibilities of making credit invoie:

  1. By clicking on "credit invoice" button adding partial refunds or a whole invoice done by hand.
  2. By right clicking on existing invoice to open hidden menu and select Convert to Credit Invoice (making the positive numbers negative and all showing on the credit invoice automatically).
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Credit invoice settings

In configuration you can customize text on credit invoice. You can also set numeration format and enter some messages displayed only on credit invoice.

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Credit invoice numeration

Numeration formats for Credit invoice are the same like for regular invoice.

Credit numeration linked to Invoice Numeration. This option allows to link credit numeration with regular invoice number sequence.