# Add a credit note > Learn how to issue a credit note to adjust or reduce an invoice amount in Caspen. Source: https://support.caspen.com/billing/payments/add-a-credit-note Documentation index: https://support.caspen.com/llms.txt ## Overview A credit note is issued when you need to reduce the amount due on a specific invoice.\ Typical reasons include correcting an error, removing a line item, or applying a goodwill adjustment. A credit note updates the _selected invoice only_. It does **not** create general account credit for later use. You can only create a credit note for invoices that are **not fully paid**. > **Warning:** > > **Important:** Once a credit note is associated with an invoice, that invoice can no longer be edited. To make further changes, you will need to void the credit note. --- ## How to issue a credit note 1. Open the invoice from the client profile or **Billing** → **Invoices**. 2. Click **Pay invoice** → **Issue credit note**.
3. Enter a clear **Reason**. 4. Under **Items to credit**, select the lines and adjust quantities or amounts as needed. 5. Click **Issue credit note**.
The invoice balance is reduced immediately, and the credit note is listed on the invoice (as shown below).
--- #### Tax and accounting - With **tax exclusive** settings, tax is calculated on the credited amount after the credit note is issued. - With **tax inclusive** settings, the amount you enter already includes the tax portion. --- #### Integrations - With **Xero** connected, Caspen creates a matching credit note in Xero. - With **QuickBooks** connected, Caspen creates a matching credit note (listed as an “**Adjustment Note**” in QuickBooks) in QuickBooks. --- ## Frequently asked questions
Can I issue a credit note for a fully paid invoice? No. The invoice must have an outstanding balance. If the invoice is fully paid, you’ll need to **unlink or delete the payment first** to make the invoice editable. Note: Always check your accounting or compliance requirements before adjusting paid invoices.
Can I edit an invoice after I apply a credit note? No. Once a credit note is linked, the invoice is locked. If you need to make changes: - **Invoice not fully paid:** Void the credit note, revert the invoice to draft, make your edits, then reissue the credit note if needed. - **Invoice fully paid:** You cannot void the credit note on a fully paid invoice.