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.

2. Open the relevant invoice

Select the reference of the invoice.

3. Open the ‘Actions’ drop-down menu

Next, select 'Create new credit note' from the 'Actions' drop-down menu. 

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.

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.