Adjusting an invoice with a credit note

Once an invoice has been sent, you don't edit the figures out from under your client — you issue a credit note against it. That keeps a clean, auditable record of the original invoice and the adjustment.

Use a credit note when you need to reduce what a client owes: a discount agreed after the fact, an overcharge, or a cancelled line item.

How it works:

• You create a credit note for an amount up to the invoice's outstanding balance (you can't credit more than is still owed).
• Issuing it gives the credit note its own number and lowers the invoice balance automatically — the invoice reconciles to the new figure.
• If you issued one in error, you can void it to reverse the adjustment.

The result is that your books always show both what was originally billed and how it was corrected.