A credit note records a reduction or correction to customer billing while preserving the original invoice history.
It is often safer than editing a posted invoice after the customer or ledger has already seen the original amount.
Where credits live
Accounting exposes Credits in the Ledger group. The current frontend includes credit-note list, builder, and allocation surfaces.
When to use a credit note
Use a credit note when the commercial amount needs to be reduced or corrected and the original invoice should remain part of the historical record.
Examples can include returned items, billing adjustments, price corrections, or other valid customer credits under your accounting policy.
Allocation
A credit can be allocated against the relevant customer balance or invoice through the supported allocation workflow. The allocation should reduce the amount owed without pretending the original invoice never existed.
Refund versus credit
A credit note changes the customer’s financial entitlement or balance. A refund represents money returned. Depending on the case, a credit can exist without immediate cash movement, while a refund affects settlement.
Permissions
The current Accounting shell protects Credits with financial report access, and the builder can have additional create or management checks.
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Last modified on September 7, 2026
