Issue a credit note

Last updated: August 28, 2026

Learn the concept
This is the step-by-step. For what it is and how it fits the bigger picture, read Credit Note in the reference.

What this does

A credit note reverses or reduces a sales invoice, for a return, a discount or a correction.

Before you start

The invoice you are crediting.

Open Credit Note

Go to Menu > Sales > Credit Note, or use a credit note from the order Billing tab.

Steps

  1. Click Create and pick the customer and the invoice or lines to credit.
  2. Set the Purpose (Return Refund, Discount Refund, or Adjustments), enter the amounts or quantities to credit, and add a reason.
  3. Confirm. The credit note lowers what the customer owes and posts the reversal to Finance.
The Create Credit Note screen: Order, Customer and Address fields, an Order Line Item table, and the Purpose options Return Refund, Discount Refund and Adjustments
A credit note against a sales order, crediting back one item

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