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
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
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 invoice is creating like regular invoice with one major exception: All amounts on the
invoice are negative.
There are three possibilities of making credit invoie:
By clicking on "credit invoice" button adding partial refunds or a hole invoice done by hand.
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
By right clicking on existing invoice to open hidden menu and select Convert to Return
Invoice with stock update. Works same like above but item quantity will return to your
stock. This option is useful for returned invoices and is available only when stock control
feature is enabled.
Credit invoice settings
In configuration you can customize text on credit invoice. You can also set numeration format and
messages displayed only on credit invoice.
Credit invoice numeration
Numeration rules are the same like for regular invoice. You can choose from three patterns of
Only number. eg. 120
Year / Credit invoice number. eg. 2018/01
Credit invocie number / Year. eg. 01/2018
Credit numeration linked to Invoice Numeration. This option allows to link credit numeration
with regular invoice number sequence.