A credit note, also known as a credit memo, is a document which a seller provides to the buyer to acknowledge that a credit has been provided to them. Invoiced allows you to issue credit notes to customers, just like invoices.
You can create a new credit note by following these steps:
There is a shortcut to create a credit note using the details from an existing invoice. You can access this shortcut by opening the invoice and clicking Actions → Issue Credit Note. The credit note will have the details pre-populated and upon creation will attempt to apply the credit note to the invoice.
Once a credit note is issued you then need to apply it in order to close out the balance. Credit notes can be applied to invoices (recommended) or added to the customer's credit balance.
Once a credit note is created and issued you can then apply it to invoices on the customer's account. You can do this by following these steps:
Instead of applying a credit note to invoices, you can add it to the customer's credit balance. Adding a credit note to the customer's balance is an advanced workflow. In typical accounts receivable workflows it is recommended to apply credit notes directly to invoices.