Credit Invoices are used to reduce or reverse charges on a Sales Invoice (for example, refunds, fee adjustments, or corrections).
This article focuses on Type as Credit Invoice in INVOICES within Pay & Bill so you know exactly what you can do at each stage of the credit workflow.
⚠ Important
Credit Invoices use four statuses only: Draft, Approved not Sent, Approved & Sent, and Cancelled.
There is no plain “Approved” status for Credit Invoices. Once a Credit Invoice is approved, it moves straight to Approved not Sent.
A Credit Invoice in Approved & Sent status cannot be cancelled.
Options you see still depend on your user permissions and your organisation’s configuration.
Credit Invoices in Pay and Bill
Go to Pay & Bill → INVOICES.
In the Type column, look for rows where Type is Credit Invoice.
Use the Invoice Status and Payment Status tags to see where each Credit Invoice is in the process (for example Draft, Approved not Sent, Approved & Sent, Cancelled).
Open a Credit Invoice to see the link back to the original Sales Invoice and the Remaining credit amount.
Credit Invoices always relate to a Sales Invoice: they reduce the amount owed on that original invoice.
Check and Edit Credit Invoices by Status
Use this section as a quick guide to what each Credit Invoice status means and what you can usually do.
Credit Invoice Status Overview
Status | What this means | What you can generally do |
Draft | New Credit Invoice not yet approved or sent. | Fully review and edit line items, amounts, dates, and tax (if you have permission). Cancel if needed. Approve from the list view. |
Approved not Sent | Credit Invoice has been approved but not yet sent to the client. | View details, adjust non-locked fields, send or mark as sent, or cancel if it should not be applied. |
Approved & Sent | Credit Invoice has been approved and sent to the client / applied to the account. | View details, resend to client, adjust profit split or template. Cannot be cancelled. |
Cancelled | Credit Invoice has been cancelled and should no longer be used. | View history. You can move it back to Draft if needed. |
Editing amounts and tax is normally done while the Credit Invoice is in Draft. Once it is Approved not Sent or Approved & Sent, financial line items may be locked depending on your rules.
📌 Notes: There is no option to update the credit invoice payment status, as credit notes are the amount refunded to the customer, so if the customer is overcharged, this credit amount will be deducted from the sales invoice.
View Bulk Actions by Credit Invoice Status
The Actions for X invoices panel (right-hand side) changes depending on the status of the Credit Invoices you select.
Bulk Actions When Credit Invoices Are in Draft
When you select Credit Invoices with Invoice Status is Draft, you see:
INVOICE SELECTION
Deselect All
Range Selection
BULK ACTIONS
Approve Invoices
Approve and Mark as Sent
Update invoice dates
Use these options to approve multiple draft Credit Invoices in one go or update their dates.
Bulk Actions When Credit Invoices Are in Approved not Sent
When you select Credit Invoices with Invoice Status is Approved not Sent, you see:
INVOICE SELECTION
Deselect All
Range Selection
BULK ACTIONS
Mark as Sent
Update invoice dates
Use these options to mark several Credit Invoices as sent or update their dates at the same time.
Bulk Actions When Credit Invoices Are in Approved & Sent
When you select Credit Invoices with Invoice Status is Approved & Sent, you see:
INVOICE SELECTION
Deselect All
Range Selection
BULK ACTIONS
Update invoice dates
Approved & Sent Credit Invoices cannot be cancelled or re-approved in bulk. You can only update their invoice dates.
Bulk Actions When Credit Invoices Are in Cancelled
When you select Credit Invoices with Invoice Status is Cancelled, you see:
INVOICE SELECTION
Deselect All
Range Selection
BULK ACTIONS
Update invoice dates
Cancel option just only available for Approved not Sent status.
Create Credit Invoices
Credit Invoices are created from Sales Invoices; you do not create them directly from Quick Add Invoice.
Create a Credit Invoice from a Sales Invoice
Go to Pay & Bill → Invoices.
Filter Type is Sales Invoice, then locate the invoice you want to credit.
Make sure the Sales Invoice meets these conditions (otherwise Create Credit invoice won’t appear):
The invoice is Approved (including Approved (not sent) or Approved & Sent)
The invoice amount is not 0
Click the Sales Invoice row to open it.
Click Actions → Create Credit invoice.
A new Credit Invoice opens with key details pre-filled and linked to the original Sales Invoice.
Update the Description, Quantity, Rate, Tax, and any other values to match the credit you need to apply.
Click Save or Save & Preview.
The new Credit Invoice appears in Pay & Bill → INVOICES with:
Type is Credit Invoice
Invoice Status is Draft
a link back to the original Sales Invoice
Adjust Credit Invoices (When Editing Is Allowed)
You can edit a Credit Invoice while it is in Draft. After it is approved, editing becomes more limited.
Edit a Draft Credit Invoice
Go to Pay & Bill → INVOICES.
Filter Type is Credit Invoice and locate the invoice you want to change.
Confirm Invoice Status is Draft.
Click the invoice row to open it.
On the Details tab, adjust as required:
Description, Quantity, Rate, Discount %
Account, Tax %, Pay Code
invoice dates, reference, PO number, and other header fields
Click Save or Save & Preview.
Actions on a Draft Credit Invoice
For a Draft Credit Invoice, the Actions menu shows:
Change Brand | Template
Profit split
Approve
Approve & Sent
Approve & Mark as Sent
Cancel Invoice
Move Credit Invoices Through the Workflow
This section covers the single-invoice Actions menu and how Credit Invoices move between statuses.
Actions on Approved not Sent Credit Invoices
When Invoice Status is Approved not Sent, the Actions menu includes:
Change Brand | Template
Profit split
Mark as sent
Send invoice to client
Cancel Invoice
From here you can:
Send the Credit Invoice to the client (and include a PDF),
Mark as sent without sending an email, or
Cancel the Credit Invoice if it should not be applied.
Actions on Approved & Sent Credit Invoices
When Invoice Status is Approved & Sent, the Actions menu includes:
Change Brand | Template
Profit split
Send invoice to client
Key points:
You can resend the Credit Invoice to the client.
You can still change branding/template and profit split.
There is no Cancel option – Approved & Sent Credit Invoices cannot be cancelled.
If further adjustments are needed after a Credit Invoice is Approved & Sent, follow your internal finance process (for example, issuing an additional credit or debit, rather than cancelling the existing one).
Email template for Credit Invoice
The Email Template that is sent to customer is 14.3.Send Credit invoice -> Client, you can look for it and configure for future use in Email Template within Settings.
Actions on Cancelled Credit Invoices
When a Credit Invoice has Invoice Status is Cancelled, the Actions menu shows:
Move back to Draft
This lets you re-open a Cancelled Credit Invoice if it was cancelled in error. After moving it back to Draft you can edit and approve it again.
Status Flow for Credit Invoices
Step | From status | To status | How it changes |
1 | Draft | Approved not Sent | Select in the list and use Approve Invoices (bulk actions). |
2 | Draft | Approved & Sent | Select in the list and use Approve and Mark as Sent (if available in your config), or approve then Mark as sent / Send to client. |
3 | Draft | Cancelled | Open the invoice and choose Cancel Invoice from Actions. |
4 | Approved not Sent | Approved & Sent | Use Mark as sent (single or bulk) or Send invoice to client. |
5 | Approved not Sent | Cancelled | Open the invoice and choose Cancel Invoice from Actions. |
6 | Cancelled | Draft | Open the invoice and choose Move back to Draft. |
There is no standalone Approved status for Credit Invoices—once approved they show as Approved not Sent.
Use Stats with Credit Invoices
You can include Credit Invoices when reviewing Invoice Statistics on the Invoices page.
📌 Notes: Stats are only available for some combinations of Invoice Type and Invoice Status. For Credit Invoices, filter to one status at a time (for example all Approved & Sent credits) before opening Stats.
Go to Pay & Bill → INVOICES.
Filter Type to Credit Invoice.
Filter Invoice Status to a single status, such as Approved not Sent or Approved & Sent.
Apply any other filters you need (Company, Invoice Period, Currency, etc.).
Click Stats on the top right.
If the combination is supported, the Invoice Statistics window opens. If you see a message saying statistics are only available for some combinations of invoice type and status, adjust your filters so all invoices share the same type and status, then try again.
Send Credit Invoices and Edit the Email Template
When you send a Credit Invoice to the client you can either adjust that one email or change the template used for future emails.
Send a Credit Invoice to the Client
Open a Credit Invoice with status Approved not Sent or Approved & Sent.
Click Actions, then Send invoice to client.
In the email window:
confirm the To, CC, BCC, and Subject fields
check that Include PDF version of the invoice in this email is ticked if you want to attach the PDF
Click Send.
Change the Email Template for Credit Invoices
In the Send invoice to client window, click Choose email template.
Select the template you want to use, for example 14.3 Send Credit invoice → Client.
To change the default content for future emails, go to Settings → Email template and edit that template directly.
You can also capture a screenshot of the email window and provide it to the AI bot to get step-by-step guidance on which template to edit.
Consolidation and Credit Invoices
Consolidation tools (such as Create New Consolidated Invoice or Run consolidation) are designed for Sales and Purchase Invoices.
Credit Invoices act as adjustments to individual Sales Invoices and do not have consolidation options in the Actions panel.
If you need consolidated reporting, consolidate the underlying Sales or Purchase Invoices and then apply Credit Invoices where required.
