Credit notes

A credit note reduces or cancels an amount a customer owes on an invoice — for a return, an overcharge, a cancelled order, or a goodwill adjustment. Rather than deleting an invoice (which breaks your audit trail), you issue a credit note against it. Credit notes are a Starter feature.

#When to use a credit note

• The customer returned goods or cancelled part of an order.
• You overcharged on the original invoice.
• You're giving a discount or refund after the invoice was issued.
• You need to write off an amount you won't collect.

#Creating a credit note

Open Credit notes → New and:

1. Select the invoice you're crediting (or the customer).
2. Add the lines or amount to credit — the full invoice or specific items.
3. Add a reason so the record is clear for you and the customer.
4. Save and, if you like, send it to the customer.

#What a credit note does

• It reduces the outstanding balance on the linked invoice.
• It creates a document you can share with the customer, mirroring the invoice's branding.
• It keeps the original invoice intact, so your books stay auditable.

#Credit notes vs. deleting or cancelling

Action	Use when
Credit note	The invoice was validly issued but the amount needs reducing or reversing after the fact.
Cancel invoice	The invoice was never valid (for example a duplicate) and hasn't been paid.

#Refunds

A credit note adjusts what's owed. If a customer already paid and you owe them money back, process the actual refund through your payment provider, then record the credit note so your PaidFast records match.