Issue a credit note

Correct an issued invoice by reversing all or part of it.

Start: the issued invoice Result: a credit note that corrects the balance and leaves the original standing.

This is the only way to correct an issued invoice. See credit notes for why.

Steps

  1. Open the invoice that is wrong.
  2. Raise a credit note against it.
  3. Credit the whole invoice if it should not have been raised at all, or part of it if one line was wrong.
  4. Review it as you would an invoice, then approve.

Both documents appear on the statement: the original, and the correction beside it.

When not to use one

Situation Use instead
A discount you intended a charge line on the invoice
Money received record a payment
Refunding a deposit end the lease and settle it

Using a credit note for those makes the statement read as though you invoiced in error, which is not what happened.

Crediting a charge removes it from what interest accrues on. If the period’s statement has already been issued, its interest is locked and the correction shows going forward - credit before you send where you can.

Related

  • Credit notesHow you correct an issued invoice. A credit note is a negative invoice that leaves the original standing.
  • InvoicesA demand for a specific period. Draft while you check it, Issued once approved — and an issued invoice is never edited.
  • Review and approve a draft invoiceCheck a draft, then issue it - the point at which it becomes a fixed record.