What is Credit Note and how it works?

A credit note is a document that a service provider gives to a customer, typically to correct errors in a previously issued invoice or to provide a document regarding refund process for specific circumstances.

You can create a credit note for both paid and unpaid invoices. However, when you create a credit note for a paid invoice, the system does not offset the invoice; it is recorded for documentation purposes only. This is typically used by centers to record payment refunds.

When you create a credit note for a partially paid or outstanding invoice, the credit note amount will offset the invoice's outstanding balance.

Upon saving the credit note, the system will prompt you to choose between creating a credit note only or creating both a credit note and a payment.

• If you select "Submit Credit Note Only," the invoice will remain marked in red, indicating an outstanding balance.

• If you select "Submit Credit Note and Create Payment" with a payment amount of 0, the invoice will be recorded as paid, and its listing will turn black.