How to create a Credit Note
Learn how to create a credit note if you need to reduce the amount of an invoice, or need to apply a refund.
Support Team avatar
Written by Support Team
Updated over a week ago

A credit note will be needed when you have invoiced for services or supplies which no longer apply and you need to reduce the total amount of this initial invoice.

For example, you have agreed to sell 100 bales of hay to another farmer and have sent the invoice. You only ended up providing 80 bales which the farmer paid for. The invoice has already been saved and sent. Now you need to send a credit note to account for the refund of 20 bales.

Follow this process to create the credit note:

  1. In the Needs Action screen select + Record, then Money Out invoice.

2. Enter in the details and description of the amount to be reduced and ensure the total is a negative amount.

3. Click on the dropdown box next to the Save button, and select to Save and Preview Credit Note.

TIP: We recommend you include in the description the invoice number of the original invoice the credit note relates to.

4. You will get a notification to ensure you have entered Other Party and description correctly. Click Continue

5. You will see a Preview of the Credit Note. If you are happy with the information, click to Generate Credit Note if you are not happy select Cancel.

TIP: Changes can not be made to a credit note once it has been generated.

6. You can click the box to email a copy to your Other Party, if you have their email address saved in your contacts.

7. The Credit Note will now be sitting in your Needs Action screen, clearly identifiable by the CN (Credit note) prefix on the invoice number.

8. You can now Match this to the relevant transaction along with the initial invoice. Read this article for more information on Matching.

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