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How to create a credit note from an invoice

This article shows you how to create a credit note from an invoice.

A credit note is essentially the notice of a refund. If you’ve previously issued a customer an invoice, a credit note signals to them that they no longer have to pay the full amount of that invoice. As well as creating a credit note from an invoice, you can also create a credit note from scratch.

1. View your invoices

Navigate to the 'Work' tab and select 'Invoicing' from the drop-down menu.

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2. Open the relevant invoice

Click on the reference of the invoice.

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3. Open the ‘Actions’ drop-down menu

Then select 'Create new credit note'. 

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4. That’s it!

Your invoice now has a matching credit note. You’ll then be able to edit the credit note, just as you would a draft invoice. When you’re happy with it, you’ll be able to email the credit note to your customer, mark it as sent or download and print it.

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Making sure everything adds up

If no money is changing hands, for example if the work was cancelled or there was a mistake on the original invoice, you’ll need to show both the credit note and invoice as settled in FreeAgent.

If you are refunding a customer, make sure to explain the bank transaction as 'Type: Credit Note Refund' when it appears in your account.

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