A credit note records money you owe back to a client, for a returned part, a goodwill discount or a billing correction, without voiding the original invoice. Fee-Lion numbers it, tracks how much is left, and lets you apply it to the client’s open invoices.
When you’d use this
Use a credit note when an invoice has already gone out and you need to reduce what the client owes, or when you’d rather keep a refund as credit toward future work.
How to issue a credit note
- Go to Invoices → Credit notes and click Credit note.
- Choose the client and, optionally, the invoice it relates to.
- Add lines, tax, a reason and any notes.
- Save. Credit notes are numbered CN-0001 onward.
A credit note is Open while it has credit left, Applied once fully used, or Void.
How to apply credit
Apply the credit to the client’s open invoices. It shows on the invoice as “Credits applied” and lowers the balance due. You can split one credit note across several invoices, and any unapplied credit stays on the client’s account.
A few guard rails keep things tidy. You can’t apply more than the note has left or more than an invoice’s balance, and you can’t apply credit to another client’s invoices or to drafted or closed invoices. If you unapply credit that had marked an invoice paid, the invoice reopens. To void a credit note, nothing can be applied from it.
Tip: When refunding a card payment, you can issue a credit note instead of returning money to the card. It’s useful for clients you’ll work with again.
Where credit shows up
Reminders, auto-pay and portal checkout all use the balance after credits, so clients are never asked for more than they owe. Clients see their non-void credit notes in the portal. Credit notes also appear on customer statements and in the accountant export.
FAQ
Can I use one credit note on two invoices?
Yes. Split it across the client’s open invoices. Whatever is left stays on account.
Why can’t I void a credit note?
It still has credit applied to an invoice. Unapply it first, then void.
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