Credit Note for an unpaid invoice

This guidance shows you how to create a credit note for an unpaid invoice. This can be used if a customer cancels their order with you before payment is made. Because you have issued the invoice to the customer HMRC requires a record to be kept, therefore you shouldn’t delete it.

Creating the Credit Note

To start, go to Invoices > Select the invoice > Click the Refund button within the Payments section at the bottom and select the second option: Create a credit note > No money has changed hands. Use credit note to settle invoices.

When you’re ready, click the Createbutton. You will be taken to the credit note which has been applied to the customer’s invoice automatically. No money is now due.

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