Docs » Credit notes
Credit notes
Reduce or refund an invoice without deleting it.
What is a credit note?
A credit note is a document that reduces the amount a client owes — used for refunds, returns, billing errors, or partial cancellations. Unlike deleting an invoice (which loses the audit trail), credit notes preserve history and are required for proper bookkeeping in most countries.
Creating a credit note
1
Sidebar → Credit Notes → + New Credit Note
Same editor as invoices.
2
Pick the customer
An amber "Apply credit to invoice" dropdown will appear.
3
Pick which invoice to credit
Or leave it blank for a general credit not tied to anything.
4
Add the line items being refunded
Just like invoice line items. Save & Send.
How credits affect outstanding balance
If you issue a $200 credit note against a $500 invoice, the invoice's outstanding balance becomes $300. If the credit equals or exceeds the outstanding amount, the invoice gets marked "credited" with a small badge.
📊 In the dashboardThe Outstanding KPI subtracts credits applied. So your dashboard always shows the real amount you're owed.