The way KashFlow applies a credit note to an invoice requires two payments to be created. If you apply a credit note to an invoice, the two entries are created automatically using a bulk payment.
Assuming you raise a credit note for £100:
- a negative payment will be added to the note for -£100 (negative entry)
- a payment for £100 will be added to the invoice (positive entry)
Because these are transactions, the system insists on using a bank account (and a payment method) to record the bulk payment.
Since the total payment totals zero, it won’t affect the bank account balance. In fact, it wouldn’t even show in the list of transactions for the bank account in Bank > View/Add or Bank > Reconcile.
So, whilst you’re asked to select a bank account and payment method, rest assured that your accounts are not affected in any way.