Connect the adjustment to the original
Enter the original invoice number in the reference field and give this credit its own number. Describe the returned item, reduced scope or correction in the notes. Enter positive quantities and rates: the document identifies the amount as a credit, not another payment request.
Example: one returned item
An invoice includes three items at 50 each. If one item is returned, this credit note can show quantity one and rate 50. Use the tax treatment appropriate to the original transaction. Retain the original invoice and the credit together; do not overwrite the invoice to hide the adjustment.
Original invoice: INV-041 Credit note: CN-008 Returned unit: 1 × 50.00 Credit before any tax adjustment: 50.00
A credit is not a confirmed refund
This tool creates a record; it does not transfer money or update another invoice automatically. Record a refund only after checking the actual transaction. Required credit-note fields and correction procedures vary, so review the document against the rules relevant to your business.