> ## Documentation Index
> Fetch the complete documentation index at: https://docs2.zenskar.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit notes

A **credit note** is a document issued by a seller to a buyer, indicating a reduction in the amount that the buyer owes to the seller.

> 🔖 Note
>
> * **Approved**, **partially paid**, and **paid** invoices cannot be edited. Therefore, credit notes must be issued to amend such invoices.
> * Draft invoices can be directly edited. Therefore, credit notes do not apply to draft invoices.
>
> Refer to the documentation on the [life cycle of a invoice](https://docs.zenskar.com/docs/life-cycle-of-an-invoice) for more details.

Some prominent reasons for issuing a credit note are listed below:

* **Billing errors**: if the buyer was overcharged (e.g., an incorrect amount was invoiced), a credit note corrects the error.
* **Discounts**: sometimes, sellers issue credit notes as a result of post-sale discounts or price adjustments.
* **Returns**: if the buyer returns goods or products, the seller issues a credit note to reduce the amount owed.
* **Damaged goods**: if goods received by the buyer are damaged or defective, the seller may issue a credit note to reflect the compensation or price reduction.

## Create a credit note

1. Navigate to the **Invoices** page in the left side panel.
2. Select the **approved**, **partially paid**, or **paid** invoice against which you wish to issue a credit note.

<Image align="center" className="border" border={true} src="https://files.readme.io/b56a79e9af8f92bdc56b6e2e012a9786ea9829118f3faeef86c0a70d537d1e86-image.png" />

3. On the **View Invoice** page, click on the **ISSUE CREDIT NOTE** button, as shown below:

<Image align="center" className="border" border={true} src="https://files.readme.io/e05fc55666087cb644ef4db1085426817916c31366bc1ca9e27c447d627d4990-View-Invoices-Zenskar-01-21-2025_01_36_PM.png" />

4. Fill in the credit note details, and click on the **Submit** button on the **Issue Credit Note** form, as shown below:

<Image align="center" className="border" width="47% " border={true} src="https://files.readme.io/a3824029d992a2ec3a02b315b9d98573a7393aa27f76f0a67ecc9ff311e3ff7c-View-Invoices-Zenskar-01-21-2025_01_44_PM.png" />

5. A new invoice will be generated. The credit note will appear as a line item in the new invoice.

<Image align="center" src="https://files.readme.io/0155d731c649eddf56eb844fddea65acf1596192379d4f9023f8577b84a9c92e-View-Invoices-Zenskar-01-21-2025_01_57_PM.png" />

## View credit notes

To view all credit notes issued against a specific invoice, navigate to the **Credit Notes** tab of the **View Invoice** page  of the invoice you are interested in.

<Image align="center" className="border" border={true} src="https://files.readme.io/a488e90eb8c498e3fecc8d5b7f9c18985630024674256e0c4b0c4308ac5af1ac-View-Invoices-Zenskar-01-21-2025_02_28_PM.png" />

To view all credit notes Navigate to **Invoices** > **Credit Notes** in the left side panel.

<Image align="center" className="border" border={true} src="https://files.readme.io/9a92719159165615d0f15589d200071c1477875067b339878a98ffb5b1cc1161-Zenskar-01-21-2025_02_26_PM.png" />
