Credit Notes
Reverse all or part of an invoice for a refund, return or correction.
When to use a credit note
A credit note records that you have credited a customer — for a refund, a returned item, or a billing correction. It gives you the document and the audit trail.
Never delete a sent invoice to fix a mistake. Credit it instead, so the history shows what happened and when.
Raising a credit note
- Go to Accounting → Credit Notes and click New Credit Note.
- Reference — optional; leave it blank and one is assigned.
- Customer — optional, but fill it in so the note is attributable.
- Amount (£) and Reason — what is being credited and why.
- Save. The credit note is created as a draft.
Issuing it
Open the draft and click Issue. The note is stamped with its issue date and becomes final. A note that was raised in error can be voided instead; issued notes cannot be edited.
Important: issuing a credit note does not change the balance on an invoice. The credit note is the record of the credit; settling the customer's account — a refund payment, or writing the invoice off — is a separate step in Accounting → Invoices. Check both when you reconcile.
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