You can add a credit to any invoice that hasn’t been voided: Draft, Open, Partially paid, Paid, or Refund Due. Adding a credit to a draft finalizes it: the draft moves out of Draft and can no longer be edited or deleted, so you’ll be asked to confirm first, and the option stays off until the draft is saved and has at least one line item. A credit can’t be larger than the invoice total, less any credits already on it.
Before you start
Credits use a list of reasons that your branch sets up ahead of time — things like “Goodwill adjustment” or “Price correction.” If no reasons have been added for the invoice’s branch yet, the Add Credit option won’t be available, and the credit form will tell you to set one up first. If you need to add a reason, see Set up credit and void reasons below.Add a credit to an invoice
1
Open the invoice
Go to Invoices, find the one you want, and open it. It can be Open, Partially paid, Paid, Refund Due, or a Draft (adding a credit to a draft finalizes it).
2
Open the actions menu
In the top-right of the invoice, click the actions menu (the three-dots button) and choose Add Credit.
3
Choose the credit type
In the Add Credit Note window, pick a Credit Type:
- Fixed Amount ($) — take a specific dollar amount off the balance.
- Percentage (%): take a share of the invoice total off, less any credits already on it. The system works out the dollar amount for you.
4
Enter the amount
Fill in the Credit Amount. For a percentage, enter a number up to 100. Either way, the credit can’t be more than the invoice total, less any credits already on it. The form stops you if it is.
5
Pick a reason
Choose a Reason from the list. This is required, and it’s how your team and your records make sense of the adjustment later.
6
Add notes
Write a short note in Notes explaining the credit. This is required too — a sentence of context is usually enough.
7
Apply the credit
Click Apply Credit. The balance updates and you’ll see a confirmation that the credit was applied.
When the customer has already paid
A credit on an invoice that’s already been paid, fully or in part, can take the balance below zero. The invoice then owes the customer money, and its status changes to Refund Due. To give that money back, record a refund. See Refund a customer.See the credit on the invoice
Once applied, the credit appears in the invoice’s Transaction History as a Credit Note, alongside any payments. Each row shows the amount, the date, and the Credit Reason you picked, so the full story of the invoice stays in one place.Edit or remove a credit
Made a mistake, or need to back out an adjustment? You can do both from the same history.1
Find the credit in Transaction History
Scroll to Transaction History on the invoice and locate the Credit Note row.
2
Open its actions
Click the actions menu (the three-dots button) at the end of that row.
3
Edit or void it
- Choose Edit Credit to change the amount, reason, or notes.
- Choose Void Credit to reverse it. Voiding asks you to pick a reason, and it puts the credited amount back onto the balance.
Voiding doesn’t erase the record — the original credit and the void both stay in the history, so the trail of what happened is always intact.
Set up credit and void reasons
Reasons are managed once per branch, in settings, and then everyone reuses them.1
Open invoice settings
Go to Settings, then Invoices, and open the Credit & Void Reasons tab.
2
Create a reason
Add a new reason and give it a clear Name (for example, “Goodwill adjustment”). Choose its category, add an optional Description to guide your team on when to use it, and leave it enabled so it shows up when someone adds a credit.
3
Save
Save the reason. It’s now available in the Reason list the next time anyone adds a credit on that branch.