Make a credit note
The document that corrects an invoice you have already sent.
An invoice cannot be edited once it has gone out and been entered in somebody ledger. The way to correct it is a credit note: a separate numbered document that names the original invoice and reduces it by a stated amount. Use it for goods returned, short delivery, a price agreed after the fact, or a plain mistake.
How to make a credit note
- 1
Choose Credit note
The lines become credits and the total reads Total credit rather than Total.
- 2
Name the invoice it corrects
Invoice number, invoice date and the reason. A credit note with no reference to an invoice is almost useless to the customer accounts team.
- 3
List what is being credited
The same lines as the original, at the same rates, for the quantity being credited. Then download and send it.
Why not just send a corrected invoice
Two invoices with the same number and different totals is how an audit trail dies. A credit note leaves both documents intact and shows exactly what changed and why.
Frequently asked questions
Can I just cancel the invoice instead?+
Only if it never left your office. Once it has been sent and recorded, the correct treatment is a credit note, and in tax systems with registered invoice series it is the only treatment.
Does a credit note mean a refund?+
Not by itself. It reduces what is owed. A refund is a separate payment, and it is worth saying which you mean in the terms.
What about the tax?+
A credit note usually carries tax at the same rate as the invoice it corrects, so the tax reverses too. Set the rate to match the original.
Is the customer data uploaded?+
No, it stays in your browser.