How To Apply a Credit Note to an Invoice (New Version)

How to Apply a Credit Note to an Invoice 

Applying a credit note to an invoice helps you manage adjustments and ensure accurate account balances. This process allows you to offset the invoice amount with the credit note value, reflecting corrections or returns. By applying a credit note, you maintain clear and accurate records, enhance financial transparency, and streamline your invoicing process.

1.  First, create credit note How to create credit note ? (New Version)

2. Go to Sales Invoices: Go to the "Sales Invoice" section.  

  Select the Invoice to Edit: Choose the invoice you wish to edit.

 3.  Select Payment Received: Click on "Payment Received and select the credit note.

4.  Choose Credit Note: Select the credit note you created and save.

5. Please ensure the invoice has an outstanding balance. If there is no outstanding balance, you need to delete the payment in the invoice and apply the credit note. 

After applying the credit note shows it in invoice.

6. You may also check from the reference link does the credit note apply successfully.

To apply Credit Notes to an invoice

7. Click on Sales and select "Credit Notes"

8. Select the credit note you want to link to an invoice

9. Click on Apply To Invoice

10. Select an invoice to apply

11. Click on Save

12. Click on Reference Link to see the linked invoice

13.   You may check from the invoice to see if the credit note has been applied

Related Guides on Credit Notes

• To unlink a credit note, please refer to: How to Unlink a Credit Note