Accounts Receivable | Credit Note Management

The only way to correct an invoice. So it had better be right.

Sales returns, post-supply discounts, rate revisions and adjustments all run through credit notes, because on the PEPPOL network there is no cancelling an invoice you already sent. Each credit note references the original, goes out the same way it did, and adjusts the output tax you already accounted so the return and your customer's claim move together.

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What the system does

Capability, input, output.

Capability	Input	Output
Credit note triggers	Sales return / discount / rate revision	Credit note draft with original invoice reference
InvoiceNow delivery	Credit note + customer's network address	Delivered over PEPPOL, with the response tracked
Output tax adjustment	Credit notes for the period	Output tax on the return reduced, with the workings kept
Customer-side effect	Credit note issued to a GST-registered customer	Their input tax claim adjusts correspondingly, flagged on issue
Partial credits	Credit against part of an invoice	Balance stays open, allocation tracked to the line
Audit trail	Every credit and its reason	Who raised it, why, and against what

Credit note triggers

Input

Sales return / discount / rate revision

Output

Credit note draft with original invoice reference
InvoiceNow delivery

Input

Credit note + customer's network address

Output

Delivered over PEPPOL, with the response tracked
Output tax adjustment

Input

Credit notes for the period

Output

Output tax on the return reduced, with the workings kept
Customer-side effect

Input

Credit note issued to a GST-registered customer

Output

Their input tax claim adjusts correspondingly, flagged on issue
Partial credits

Input

Credit against part of an invoice

Output

Balance stays open, allocation tracked to the line
Audit trail

Input

Every credit and its reason

Output

Who raised it, why, and against what

Compliance + integrations

The correction is the record.

There is no cancellation flow to fall back on, so the credit note is the whole audit story of what went wrong and how it was fixed. That makes the reason field worth taking seriously: a run of unexplained credits against one customer is the pattern a reviewer looks for, and it is also the pattern a sales team creates when discounts are being agreed off-system.

Regulations we work within

GST Act

Output tax already accounted is adjusted through the credit note, on the return for the period it is issued.
Customer's input tax

The corresponding adjustment on the customer's side follows from the same document, which is why it goes to them formally rather than as a note.

Connects to

InvoiceNow Credit notes sent over the network
Xero Credit note sync
QuickBooks Credit note sync
Customer portal Credit visible to the customer on issue

Credit Note Management FAQ

What buyers ask.

We sent an invoice with the wrong amount. Can we just cancel it?

No, and this catches teams moving onto InvoiceNow from a system where they could. Once the invoice is on the network it has been delivered, and the correction is a credit note against it, optionally followed by a fresh invoice for the right amount. It is a better trail than a cancellation, since the original error stays visible instead of disappearing.

Which period does the adjustment fall in?

The period the credit note is issued in, not the period of the original invoice. That means a credit raised after you have filed does not reopen a filed return, which is the outcome you want. It also means a credit sitting in someone's drafts is output tax you are still carrying.

Does the customer have to do anything?

If they are GST-registered, their input tax claim adjusts to match, which is why the credit note goes to them as a document rather than as an email saying you have credited them. On InvoiceNow it lands in their system the same way the invoice did, so there is nothing to key in and nothing to argue about later.

Post-supply discount. Is that a credit note?

Yes, where the discount is agreed after the supply has been made. The system handles both the linked case, where the original invoice is referenced, and a general scheme applied across a customer's invoices for a period. The linked case is easier to defend, so it is the default.

Related features

Raise your next credit note the way the network expects.

Connect one entity, free. Trigger a sales return on a recent invoice. The credit note drafts against the original, goes out over the network, and the output tax on your return comes down with it.