A credit note reduces the amount a client owes — useful for goodwill discounts, billing corrections, returns, or partially writing off an invoice.

  1. Open the invoice you want to credit.
  2. Click Issue Credit Note (from the action menu).
  3. The invoice's line items appear with their outstanding balances.
  4. Enter the credit amount to allocate against each line. You can credit one specific line, several, or the whole invoice.
  5. Add a reason for the credit (visible on the PDF — e.g. "Goodwill discount", "Correction to Q4 billing").
  6. Review the total credit amount.
  7. Click Save.

The credit note is created with its own number (using the credit note prefix you configured). The invoice's outstanding balance is reduced by the credited amount. If the credit covers the full balance, the invoice moves to Paid.

The credit note appears on the client's statement as a negative line so the running balance stays accurate.

Tip: To send the credit note to the client, open it and use Send or Share with Client — the same actions are available as on an invoice. The credit note PDF clearly identifies itself as a credit and references the original invoice number.