How to Apply a Credit Note When Invoice Has Been Fully Paid

Learn how to apply a credit note even after the invoice has been fully paid to adjust your financial records accurately and ensure compliance.

1. Click on an invoice to edit

2. Ensure this invoice has been fully paid

3. However to apply a Credit Note, the invoice must be unpaid

(To record a refund, please refer to How to record refund payment)

4. Click on Save

5. Click Sales and select 'Credit Note'

6. Click on Add New

7. Fill in the customer and bill to information

8. Choose an invoice date

9. Select a reason

10. Choose the product 

11. Ensure that the amount must be same as the refund payment amount

12. Click on Save

13. Go back to your invoice on the insert payments tab

14. Select 'Use a Credit Note'

15. Select the credit note 

16. Click on Use

17. Payment has been made using the credit note

19. Click on Save