What Is a Credit Note
Credit note is a document through which a company grants a customer or payer credit for a specific amount. It can be used to correct an error on an invoice, provide an additional discount after an invoice has been issued, or offset the cost of goods or services.
A credit note does not change the prices or line items on the original invoice. It reduces the amount due on the invoice or increases the payer’s balance if the document is created without being linked to an invoice.
When it is used:
Discounts and bonuses. For example, a volume discount or compensation for a delayed delivery.
Invoicing errors. An overcharged price, quantity, or amount that needs to be corrected.
Substandard products or services. Partial compensation without returning the goods.
Order cancellation after the invoice has been issued.
In the Orderry, you can create a credit note in two ways:
directly in the credit notes section — without linking it to an invoice;
from an open invoice — automatically linked to it.
Creating a Credit Note Without an Invoice
Use this method if you need to issue a credit to a client or payer without linking it to a specific invoice.
Go to the Invoices > Credit Notes section.
Click + Credit Note.
Select the legal entity, customer, and payer.
If the customer and payer are the same person, enable the Payer is the same as the client option.Fill in the Payment Method, Issue Date, Due Date, Manager, and Comment fields.
In the Services and Products section, add the necessary items and specify the following for each:
Price — the credit amount per unit of products or services;
Quantity — the number of units for which credit is granted.
Click Create.
Once created, the credit note will appear in the general credit note table.
Note: In the form for creating a credit note without an invoice, there is no field for selecting an invoice. Therefore, once created, it is not possible to link such a document to an invoice.
Creating a Credit Note from an Invoice
Use this method if you need to reduce the amount due on a specific invoice.
Open the desired invoice.
In the Actions menu, select Credit Note.
Review the data in the credit note creation form.
The system automatically fills in some of the fields:Invoice — displays a link to the original invoice;
Legal Entity, Client, and Payer — data is transferred from the invoice, and these fields are not editable;
Services and Products — all invoice items are transferred while preserving the original display format of the order items;
Price — the current price from the invoice is set for each item.
Review the items and specify the credit amount:
leave the original price if you need to provide credit for the full unit cost;
change the price if you need to issue a credit for only a portion of the cost;
specify the number of units for which the credit is being issued.
Click Create.
Once created, the credit note will appear in the general credit note table.
Important: You cannot create a credit note for invoices in the Paid or Canceled status groups.
Credit Note Statuses
A credit note has two statuses: Draft and Issued. The status determines whether the document can be edited and whether it affects the amount due.
Draft
A draft is a credit note that has not yet been confirmed and does not affect settlements with the customer.
While the document is in this status, you can:
edit its details;
add, modify, or delete line items;
change amounts;
delete the credit note.
Please note: While the credit note has the Draft status, the outstanding balance on the invoice and the payer’s balance remain unchanged.
Issued
The Issued status means that the credit note has been finalized and the amount has been accounted for in the settlements.
Depending on how the credit note was created:
if created from an invoice, the outstanding balance on that invoice is reduced;
if created without an invoice, the amount is credited to the payer’s balance.
Once issued, a credit note cannot be edited. Specifically, you cannot change the line items, amounts, document number, or link to an invoice, nor can you change how it was created.
Canceled
The “Canceled” status means that the issued credit note has been voided and no longer affects settlements with the client.
What happens after cancellation:
if the credit note was created from an invoice, the outstanding balance on that invoice reverts to its previous value (increased by the amount of the canceled credit note);
if the credit note was created without an invoice, the amount is deducted from the payer’s balance
FAQ
Can an invoice be linked to a credit note that was created without an invoice? No. Once created, an invoice cannot be attached, detached, or replaced.
Will the invoice amount change after the credit note is issued? No. The total amount and line items of the invoice remain unchanged; only the balance due is reduced.
Can I change the legal entity or customer in a credit note created from an invoice? No, these fields are locked and cannot be edited.
How do I refund a customer? Through a separate financial transaction. A credit note only records the credit.