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How to issue invoice credit notes to reduce the invoice amount
How to issue invoice credit notes to reduce the invoice amount

How to edit an existing unpaid invoice to reduce the amount due by issuing credit notes on the line items

DeShawn Brown avatar
Written by DeShawn Brown
Updated over a week ago

Sometimes when creating and sending invoices, you may need to make an adjustment. Perhaps you've overcharged or added too many line items. You can use credit notes to credit or remove certain line items or create custom adjustments to reduce the invoice amount owed.

Creating a credit note

To create a credit note, you must go to an unpaid invoice.

Note: For paid invoices, you can issue a full or partial refund if there has been an overpayment.

From the invoice actions, select "Issue Credit Note"

From there, a modal will appear that allows you to credit specific line items. Selecting each line item will reduce the amount of the invoice that is due to the customer by that amount. The new invoice total is shown at the bottom. You can also leave custom internal notes for your team to understand why you made the credit.

Once completed, the customer's invoice will be updated to reflect the new total.

Custom credit notes

If you prefer to reduce the invoice by a custom amount not related to a specific line item, you can choose "Add custom credit." This will allow you to generate a custom line item and amount to credit the invoice by. You can add as many as needed.

Viewing/Voiding Adjustments

Once an invoice has been issued a credit note, you can see the history of adjustments on that invoice. The updated invoice total will be displayed with an "adjusted" denotation, and the historical list of credits (and when they were issued) will be listed under the "Adjustments" section. You can also see a "C" symbol next to any line items that were credited.

You can void a credit note by clicking on the three dots on the credit note line. This will effectively delete that credit note and adjust the invoice to the cost before that credit was issued.

Pro Tip: You can also click on the 3 dots on each invoice line item to issue a credit note for that specific line item.

Happy Coworking!

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