Credit notes and adjustments

A credit note lowers the balance a customer owes on an invoice you have already sent. No money moves. It is how you give an allowance, a discount or a goodwill amount after the invoice is out, because a sent invoice cannot be edited and a line cannot be negative. A write-off closes whatever is left when you decide not to collect it.

Before you use it

Credit notes and write-offs are for owners and admins. They are part of the plans that include credit notes and write-offs. On other plans you see a message that the feature is not part of the workspace's plan, and nothing is changed. You are also asked to confirm it's you with a recent sign-in, and a second-step code if your account has one.

Issue a credit note

1. In Invoices, open the row menu of the invoice and select Credit note. It appears only for an invoice that is open: sent, viewed, overdue or partially paid.
2. Enter the Amount in the invoice's currency.
3. Enter a Reason. It is required, and it is recorded in the ledger and the audit log.
4. Select Issue credit. You see "Credit note issued".

The amount cannot be more than the balance due. There is no way to undo a credit note in the console, so check the amount first. A double click issues only one.

What changes on the invoice

• The credit shows as a Credits applied row in the totals, and Amount due goes down by the same amount. The PDF and the pay page list the same rows.
• If the credit does not cover the balance, the status becomes Partially paid. If it covers all of it, the status becomes Paid, even though no payment was made.
• The row menu's Ledger shows the entry with your reason.
• No email goes to the customer when you issue a credit note.

Write off a balance

A write-off is for a balance you will not collect, such as bad debt. Select Write off in the row menu, give a reason, and confirm. The whole remaining balance is written off, the status becomes Written off, and you find the invoice under Void & written off. You cannot undo it from the console. It is not a refund, and it does not touch the customer's card or bank.

Money the customer already paid

A credit note only works on an invoice with a balance. On a paid invoice it is refused, because there is nothing left to reduce. If a customer paid and you owe them money back, refund the payment from the payment's page in Payments. That is a separate action for owners and admins.

If a customer paid you by cash or check, select Record payment in the row menu instead. That is a payment, not an adjustment, and it asks for a reference such as a check number.

Which one to use

You want to	Use
Lower a bill that is still unpaid	Credit note
Stop chasing a balance you will not collect	Write off
Cancel an invoice nobody has paid	Void. See Change, void or delete an invoice
Return money already paid	Refund the payment