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Record a credit note or debit note

Lower or raise what your customer owes on an invoice, or undo a note made by mistake.

A credit note lowers what your customer owes on one invoice, and a debit note raises it. Neither moves money. To undo one, record the other for the same amount.

Record a note from an invoice

  1. Open the invoice and click More actions (⋯).

  2. Choose Record credit note or Record debit note.

  3. Check the Amount. A credit note starts with the invoice's open balance.

  4. Set the Transaction date, add a Memo if you like, and click Save.

The note counts in your aging reports on its transaction date. A backdated note changes past aging.

Record a note from Transactions

  1. Go to Transactions and click Record transaction.

  2. Choose Credit note or Debit note as the Transaction type.

  3. Choose the Customer, then click + Add invoices to pick the invoice.

Each note applies to exactly one invoice.

What your customer sees

When a note leaves a balance to pay, your customer is usually emailed that their balance changed. A credit note that brings the balance to zero sends nothing.

A credit note larger than the balance puts the invoice in credit. Your customer can use that credit on another invoice.

Undo a note made by mistake

You can't edit or delete a note once it's recorded. Record the opposite note instead.

  1. Open the same invoice and click More actions (⋯), then Record debit note.

  2. Enter the same amount as the wrong credit note. If the invoice is in credit, the amount starts filled in with the credit.

  3. Add a memo such as "Reverses credit note recorded in error" and click Save.

  4. If you needed a different amount, record a new credit note for it.

A credit note for the same amount undoes a debit note the same way. There's no void action for a credit note or a credit. A debit note clears it.

Note: Void invoice is different. It cancels what's still owed on an invoice, and it's only offered while there's a balance to pay. See void an invoice.

Notes in QuickBooks

If the invoice is already in QuickBooks, a credit note syncs as a credit memo applied to it. A debit note adds a line to the QuickBooks invoice.

Who can use this feature?

  • Team members with Transactions access

  • Available on all plans

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