Credit notes are always linked directly to invoices, making it easy to manage credits and balances. Here’s how to create and handle credit notes:

Creating a Credit Note

1. Open the Invoice
   Find the invoice you’d like to apply a credit note to. Open it and select Create a Credit Note from the "Actions" menu.
   
   

2. Select Quantities
   Choose the quantities to include in the credit note. You can create multiple credit notes for a single invoice if needed.

3. Create and Review
   Click Create to generate your credit note. It’ll be saved as a draft so you can double-check everything. When you’re ready, go to the "Actions" menu to confirm it or delete it if needed.

Key Things to Know About Credit Notes

• Linked to Quantities, Not Amounts
  Credit notes are tied to product quantities on an invoice, so you can’t manually set the amount.

• Marking Invoices as Paid
  If a credit note covers all items on an invoice, the invoice will automatically be marked as fully paid. Credit notes act as payments toward invoices.

• Limits on Credit Note Amounts
  You can’t apply a credit note if it exceeds the remaining balance on an invoice.

• Handling Existing Payments
  If there’s already a payment on the invoice, you’ll need to delete it first. This will unlock the “Create Credit Note” option.

• Finding Your Credit Notes
  All your credit notes are organized under the Credit Notes tab. Head to the general menu, and select Credit Notes in the Invoices & Payments section.

• Personalizing Credit Notes
  Customize your credit notes format from your general settings to fit your business needs (Your PDF settings).