Add a credit note

Learn how to issue a credit note to adjust or reduce an invoice amount in Caspen.

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.

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.

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How to issue a credit note

1. Open the invoice from the client profile or Billing → Invoices.

2. Click Pay invoice → Issue credit note.

1. Enter a clear Reason.

2. Under Items to credit, select the lines and adjust quantities or amounts as needed.

3. Click Issue credit note.

The invoice balance is reduced immediately, and the credit note is listed on the invoice (as shown below).

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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.

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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.

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FAQs

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.