Credit notes reduce what a customer owes without recording new money received. Use them for approved credits, corrections, concessions, or other non-cash adjustments.

What this guide helps you do

• Find an available credit note and apply it to the right invoice.
• Understand how credit applications affect invoice balance.
• Use AI to identify candidates without applying credit automatically.

Before you start

• Confirm the credit note is approved, available, and in the same currency as the invoice.
• Know which invoice should receive the credit.
• Check whether a refund is more appropriate than applying credit.

Do it manually

1. Open Money and filter to Credits or open the customer record from Money.
2. Open the credit note drawer and confirm available amount.
3. Choose the apply credit action.
4. Select the invoice and amount to apply.
5. Save the application and confirm both credit and invoice balances changed.
6. Review Customer 360 so the reason for the credit is clear.

Ask Faster AI

• Find available credit notes for this customer and suggest which open invoices they could apply to.
• Apply this credit note to invoice INV-102 only after I confirm the amount.
• Explain whether this credit note should be applied to an invoice or handled as a refund.

Review before saving, sending, paying, or refunding

• Never apply credit across different currencies.
• Confirm the credit reason and customer before applying it.
• Check invoice balance after applying credit, especially for partial credits.

Common issues and fixes

• If the invoice is not selectable, check status, customer, and currency.
• If the credit is exhausted, review previous applications.
• If the customer expects cash back, review refund guidance instead of applying credit.

Refunds and credit policy

For when a credit note is better than cash back, and what that choice communicates to the customer, read the refunds and credits article. Refunds, Credit Notes, and Adjustments Without the Awkwardness.

Connected workflows

• Review customer money history
• Review Money activity for a customer
• Manage roles for content and Money
• Collect pay-now payments from plugins

Placeholder media

• Screenshot placeholder: add an annotated screenshot of apply a credit note with customer names, amounts, account details, and private notes blurred.
• Video placeholder: add a short walkthrough that starts from the Money workspace, shows the manual path, then shows the review step before anything is sent, paid, refunded, or published.

Related help

• Track invoice status
• Issue refunds or adjustments
• Troubleshoot payment status

Use it in daily operations

• Before closing the task, review the related Money record, customer record, owner, due date, and any follow-up message that should happen next.
• If the workflow affects a real payment, keep the action in review until the amount, recipient, invoice, quote, or bill details are confirmed.
• Use Faster AI to summarize the payment context and prepare a checklist, but approve sends, refunds, bill payments, and customer-facing messages manually.