Issue a Credit Note.
How to issue a full or partial credit note from a finalized invoice.
Issue a Credit Note
For: business owners who need to reverse or reduce a finalized invoice. What you need: a finalized invoice (status: sent, partially paid, or paid).
Credit notes cannot be created standalone. You issue them from an existing invoice.
1. Open the source invoice
Go to Sales > Invoices, find the finalized invoice you need to credit, and open its detail page.
2. Click Issue credit note
Click Issue credit note on the invoice detail page. InvoiceScript creates a credit note draft that copies the invoice's line items, customer data, and tax rate snapshots.
The credit note draft opens in the editor.
3. Adjust for partial credit (optional)
For a full credit, leave the line items as they are.
For a partial credit, edit the draft: remove lines you do not want to credit, adjust quantities, or change amounts. The totals recalculate as you edit.
Example: Northwind Studio invoiced Acme Hardware for 16 hours of website design at €125/hour (NW-2026-0003, total €2,420.00 incl. 21% VAT). Two hours were disputed. Mira Holst issues a credit note, removes all lines except website design, and changes the quantity from 16 to 2. The credit note total is €302.50 incl. VAT.
4. Finalize the credit note
Click Finalize. The system checks that the credit note total does not exceed the remaining creditable balance on the source invoice. If you have already issued other credit notes against this invoice, only the remaining uncredited amount is available.
The credit note receives a permanent number from the CN sequence (for example, CN-2026-0001).
5. Send to the customer
After finalizing, send the credit note by email. The PDF is attached with "Credit Note" labeling.
What can go wrong
- Over-credit. If you try to finalize a credit note that exceeds the remaining balance on the source invoice, finalization is rejected with an error showing the maximum allowed amount.
- Cancelled invoice. You cannot issue a credit note against a cancelled invoice.
Related pages
Ready to build?
One-time purchase. Self-hosted. Own every file forever.