Creating a credit note means that you are creating a negative invoice from that original invoice, which will therefore zero it out in your revenue. Original invoice will stay in your ledger and it will have a credited status. So creating a credit note will not delete the original invoice but it will delete it from receivables.
Credit note will have its own invoice number and it will be shown in accounting reports.
How to create a credit note?
Open the invoice and click on the blue "Create a credit note" button on the upper left corner:
Confirm that you want to create a credit note by clicking "OK".
Then you can choose if you want to send the credit note to the customer and/ or print it. It is a good practice to send it to the customer but if, for some reason, you don't see in necessary just choose "Cancel".
How to create a partial credit note?
If the invoice was partially paid and you want to create a credit note to the unpaid part. For that you need to first remove the payment from the invoice. Open the invoice and click the green "Mark as paid" button:
Remove the payment by clicking "X" next to the payment sum:
After that you are able to create a credit note to the entire invoice. After crediting the invoice you can create a new invoice for only the amount that the customer paid (remember to send that invoice to your customer and remind them to not pay it twice). After sending that invoice you can mark it as paid.
If you have any additional questions, please contact us!