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Issue a credit note, then apply it to an invoice or refund it

A credit note in Invoice Crowd is a numbered credit you owe a customer, raised on its own or straight from the invoice you over-billed. Apply its balance to an open invoice for the same customer in the same currency, or record a refund, and the invoice due, the credit balance and the ledger trail update together.

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  • Apply to an invoice or refund
  • Balance drawn down as you use it
  • Ledger entries posted with it
Invoice Crowd credit notes list with open and closed credit notes, their invoice, total and balance, and a credit being applied to an open invoice

What is inside

Raise the credit, then decide where it goes

A credit note is money you owe back to a customer. Invoice Crowd gives it its own number and its own balance, then lets you spend that balance against an open invoice or refund it, with the ledger following either way.

Raising it

Blank, or from the invoice

Invoice Crowd invoice actions with Create Credit Note, and the credit note it creates with the customer, lines and total copied from the invoice

Two routes into a credit note

Start a blank credit note with the Create Credit Note button on the Credit Notes list, or open the invoice you over-billed and choose Create Credit Note. That second route copies the customer, the lines and the totals into a credit for the full amount, dates it today, and fills the Invoice No. column with the invoice it came from. Send it to the customer from the editor whenever they need a copy.

  • A blank note opens on your default template
  • Opening balance set to the invoice total
  • Linked to the invoice it came from
Invoice Crowd credit notes numbered CN-00001 upward, each with its own total and the balance not yet used

Its own number, its own balance

Credit notes use the same editor as invoices, with the same customer picker, line items, taxes, templates, preview and PDF, and number on their own sequence from CN-00001. Each note carries a Balance, the credit still available, so you always know what is left to use.

  • Numbered CN-00001 upward, separate from invoices
  • Total and Balance sit side by side on the list
  • Void a sent credit note and keep its number
Invoice Crowd Create Debit Note dialog for INV-2041 with the reason for the additional charge, the debit note editor banner Debit Note for INV-2041 with Open Original Invoice, and the new draft DN-00003 tagged Debit Note in the Invoices list

Debit notes for extra charges in India

For India businesses, Create Debit Note on a sent invoice raises a DN- numbered note for an amount you add after the invoice went out, with the reason on record. Its editor shows Debit Note for the original invoice number with Open Original Invoice, the original stays exactly as issued, and the GST Filing page reports the note with the invoice it adjusts.

  • DN- numbering of its own
  • Linked to the original invoice
  • Type: Debit Notes in the Invoices filter

Applying it

Always in balance

Applying an Invoice Crowd credit note to one of the customer's open invoices: the Apply window shows the invoice, what is due on it and the amount to apply, filled in from the credit that is still open

Apply it to an open invoice

Choose Apply on a credit note and Invoice Crowd lists that customer's open invoices in the same currency, with the amounts already filled in, oldest due first. Change any amount, then apply. Each invoice's due falls by its amount and the credit's balance falls by the total. An invoice the credit clears closes as paid.

  • Matching open invoices listed for you
  • Always within both balances
  • Spread one credit across invoices
Invoice Crowd offering a euro credit note only the customer's open invoices in euros, with the amount to apply filled in from the credit that is still open

Safeguards built in

Every amount is checked against both balances, so neither the credit nor the invoice ever drops below zero. Credits apply to invoices in the same currency, rounded to that currency's precision, so every figure reads exactly as entered.

  • Same customer, same currency, same business profile
  • Rounded to each currency's precision
  • Kept within each business profile

Closing it out

Refunded and posted

The Invoice Crowd Refund window for INV-2039 reviewing a 2,400 dollar credit note refunded to the customer through Stripe, and a credit note’s own Refund form that records a refund you already made, with amount, refund date and notes

Or refund the balance instead

Pay the customer back from your bank, then record it here. Choose Refund, enter an amount up to the remaining balance, set the refund date, add a note and save, and the balance drops. To return a card or online payment through Stripe, PayPal, Razorpay, Square, Braintree, Authorize.net, Airwallex, GoCardless or Paystack, use Refund on the paid invoice, which creates the credit note and refunds through the provider in one step.

  • Up to the credit's remaining balance
  • Refund date and notes recorded
  • Card refunds through your gateway
Invoice Crowd credit notes with the journal a credit note posts, reducing sales and what the customer owes

Posted to the ledger as it moves

Issuing a credit note reduces what the customer owes and records the reversal against the chart of accounts and the general ledger. Applying the balance to an invoice or recording a refund updates the customer balance and the ledger together, with no second entry to make.

  • Entries land in the ledger your reports already read
  • Open until the balance reaches zero, then Closed
  • Balances and entries always in step

Built in

The rest of what a credit note carries

Credit notes sit in the same account as your invoices, payments and accounting, so everything works the way you expect.

  • Filters that stick

    Filter the credit note list by status, customer or date range, and lock a filter so it is ready next time.

  • Actions on every row

    Edit, preview, download the PDF, copy a link, duplicate or delete a credit note without leaving the list.

  • In the customer portal

    Customers can view their credit notes in the customer portal, with the access you choose for them.

  • Delete or void

    Delete unsent, unused credit notes one at a time or in bulk, and void a sent one so its number stays on record.

  • A focused editor

    The credit note editor puts Apply to Invoice and Refund up front, with no payment collection to set up.

  • Vendor credits too

    Credits from your suppliers are tracked as vendor credits, with screens of their own.

  • Shared editing

    Anyone on your team with permission can open and edit a credit note, and the most recent save is the one kept.

  • Every open invoice in one list

    The apply form lists all of that customer's open invoices together, oldest due first.

  • Never posted twice

    Each apply or refund is recorded exactly once, even if the connection drops and you submit it again.

  • Partial payments respected

    Where an invoice is on partial or split payments, the credit settles exactly the portion it pays for and the rest of the schedule stays in place.

  • Delivery tracking

    Sent, Opened and Viewed badges show when an emailed credit note reaches your customer.

  • Team permissions

    Decide who on your team can create, edit, apply or refund credit notes, with a permission for each action.

Questions

Credit Notes, answered

How do I create a credit note from an existing invoice?

Open the invoice in Invoice Crowd and choose Create Credit Note from its action menu. The invoice is replicated as a credit note under a new CN number, with the customer, the line items and the totals copied across, an opening balance equal to the invoice total, and today's date. The credit note records which invoice it came from, and that link appears in the Invoice No. column of the Credit Notes list.

Can one credit note be applied to more than one invoice?

Yes. Applying a credit note draws down its balance by the amount used rather than consuming the whole note, so a credit can be applied repeatedly across several of that customer's open invoices. Each application is capped at the smaller of the remaining credit and the invoice's remaining due. The note stays Open until the balance reaches zero, at which point it reads Closed.

Which invoices can a credit note be applied to?

Any open invoice for the same customer in the same currency. Invoice Crowd lists them for you, oldest due first, with the amounts filled in and rounded to that currency's precision. Issue the credit in the currency the original invoice was billed in.

How do I refund a customer's card or online payment?

Use Refund on the paid invoice. For Stripe, PayPal, Razorpay, Square, Braintree, Authorize.net, Airwallex, GoCardless and Paystack, it creates the credit note, refunds through the provider and is recorded once the provider confirms. For a refund you pay from your bank, use Refund on the credit note to record the amount, the refund date and any note, and the credit's balance drops.

Can a credit note be deleted or voided?

Yes. A credit note that was never sent and has not been applied or refunded can be deleted, individually or in bulk. Once it has been sent to a customer, use Void: it keeps the credit note and its number, marks it Void and reverses it in your books. If you choose Delete on one you already issued, Invoice Crowd recommends Void and shows what deleting would change for your country before you confirm. Remove its applications and refunds first, then void it.

Can I issue a debit note in Invoice Crowd?

Yes, for India businesses. On the Invoices list, choose Create Debit Note in a sent invoice's menu and give the reason for the additional charge. Invoice Crowd opens a DN- numbered draft linked to the original invoice, with its customer and currency already set. Add only the extra amount and send it like any invoice; the GST Filing page reports it with the original, and the Type filter on Invoices lists debit notes on their own.

Which Invoice Crowd plans include credit notes?

Credit notes are included on every paid plan, with no add-on to buy.

Can a customer's credit be used on their next invoice automatically?

Yes. Switch on Auto-Apply Credits in the invoice's Options and the customer's available credits are used when the invoice is sent. You can also choose Use Credit on an invoice to apply a credit note, an advance payment or an overpayment by hand. Advances and overpayments are listed in Payments Received.

Correct any invoice cleanly

Raise the credit note, apply it to the invoice or record the refund, and keep the invoice due, the credit balance and the ledger trail together.

  • No card required to start
  • Your data stays yours
  • Cancel anytime
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