Credit Note for a fully paid invoice

This guidance shows you how to create a credit note for a fully paid invoice. This can be used if your customer returns something to you but you don’t provide refunds, for example. The credit note can then be applied to a future invoice.

Creating the Credit Note

To start, go to Invoices > Select the invoice > Click the Refund button within the Payments section at the bottom.

You then need to select the second option Create a credit note > I’ve not yet paid in the popup.

When ready, click the Refund button. You will be taken to your newly created credit note that lists all your line items as a negative. Please leave this unpaid.

Using on Future Invoices

Unpaid invoices for this customer will have an Apply Credit button within the Payments section at the bottom of the invoice screen. Simply click Apply Credit, tick the credit note that you have created and press Apply.

You can repeat this process over on subsequent invoices until all the credit is used up.

See how IRIS KashFlow works with your business and your books