Raising a Credit Note

Credit all or part of an issued invoice, choose between immediate issue and a draft, and apply or void a draft.

Last reviewed against source: 2026-10-29

Before you start#

• You need the invoices.credit permission and access to the invoice's warehouse.
• The invoice must be issued. A Draft, Void or already Credited invoice cannot be credited.
• Credit notes cannot exceed the invoice total across all credits.

Raise a credit note#

1. Open Finance → Invoices and select the invoice.
2. Open the actions menu and choose Billing → Credit Note.
3. In the Issue Credit Note dialog, leave Full credit (all line items) ticked to credit everything. Untick it to credit part of the invoice.
4. For a part credit, enter a quantity against each line under Enter the quantity to credit for each line. Each line shows its original quantity, total and the maximum you can still credit. At least one line needs a quantity above zero, and quantities allow two decimal places.
5. Add Notes if the customer or your accounts team should see a reason.
6. Choose Issue Credit Note.

Signals shows Credit note issued. The credit note takes effect at once, and the invoice balance falls. An issued credit note is final.

Save a draft instead#

Tick Save as draft before choosing Issue Credit Note when someone else must approve the credit.

1. Signals shows Credit note saved as draft. The invoice balance does not change yet, and a draft does not count toward the credit limit.
2. Open Finance → Credit Notes, or go to /credit-notes, and select the draft. It shows as Draft credit note #… until it has a number.
3. Choose Apply and confirm Apply this credit note? Its amounts will be committed to the invoice balance. Applying needs the credit-notes.apply permission, and the credit limit is checked again at that moment.
4. Or choose Void and confirm Void this draft credit note? A voided draft never touches the invoice. Voiding needs the invoices.void permission.

Read a credit note#

Open Finance → Credit Notes to filter by status and read the Reference, Invoice, Account, Issued, Total and Status columns. A credit note's lines are read-only; there is no line editor. An issued credit note is marked Terminal.

A credit is not a refund. To return money that was paid, record the refund against the original payment as described in Recording a Payment.

When a credit is not offered#

• A standard invoice issued before financial postings existed cannot be credited, and the request is refused.
• A posted standard invoice that you want to cancel outright can use Workflow → Cancel posted invoice instead of a full credit.
• A deposit invoice can be credited, but its credit does not create a financial posting because the deposit did not post.

Related#