Credit Notes — correct issued invoices
Credit notes are the only way to correct an issued invoice — they reduce or cancel the balance owed and become permanent audit records once issued.
Section 01
What are Credit Notes?
1 minute
Credit Notes live under Commerce › Sales › Credit Notes. A Credit Note is a document that reduces or cancels the amount owed on an issued invoice. It is the only way to correct an invoice in Brytebuild — because issued invoices are immutable (they cannot be edited or deleted), a Credit Note acts as the official reversal document.
- Credit notes are always tied to a specific invoice — they correct that invoice and reduce its outstanding balance
- Like invoices, credit notes have two statuses: Draft (editable, deletable) and Issued (immutable)
- Credit notes are created from inside an invoice using the Create Credit Note button — there is no standalone "New Credit Note" button on the list page
- Each credit note carries a sequential reference (CN-2026-000001) assigned at issue, a reason field, and full line-item detail
Once an invoice is issued it is locked — the Edit button is removed and no changes can be made to the original document. If you need to reduce the amount, correct a line, or process a return, you must create a credit note. The credit note sits alongside the original invoice as a permanent audit record.
Section 02
When to use a Credit Note
1 minute
Credit notes are the right tool in any of these situations:
Customer return
A customer sends goods back after payment. Raise a credit note to reduce or zero the invoice balance and trigger a refund or apply the credit to a future invoice.
Invoice correction
You invoiced the wrong quantity, unit price or VAT rate. Issue a credit note for the incorrect amount, then raise a corrected invoice for the right amount.
Goodwill credit
You want to give a customer a discount or partial credit for a service issue or complaint — without raising a full return. A credit note for the agreed amount is the correct record.
Full invoice reversal
The entire invoice was raised in error. Create a credit note for the full invoice value to zero the balance. The original invoice and the credit note both remain visible in the audit trail.
Always fill in a clear Reason before issuing a credit note — e.g. "Customer returned 2 units — damaged in transit" or "Invoiced wrong qty, correct invoice to follow". This text is visible on the credit note PDF and in the list view sub-label.
Section 03
Credit Notes list
2 minutes
The Credit Notes list shows all credit notes across all invoices. Draft credit notes are shown with italic "draft" in the reference column — they have no reference number yet.
| Credit Note # ↕ | Customer ↕ | Original Invoice ↕ | Status ↕ | Total ↕ | Action |
|---|---|---|---|---|---|
| draft | FLFacto Ltd | INV-2026-000002 | Draft | GBP 6.00 | View |
| draft | FLFacto Ltd | INV-2026-000002 | Draft | GBP 6.00 | View |
| draft | FLFacto Ltd | INV-2026-000002 | Draft | GBP 6.00 | View |
| CN-2026-000001 | FLFacto Ltd | INV-2026-000001 | Issued | GBP 100.00 | View |
| Column | What it shows |
|---|---|
| Credit Note # | The sequential reference assigned at issue — e.g. CN-2026-000001. Draft credit notes show italic "draft" — they have no number yet. The number is assigned when you click Issue Credit Note. |
| Customer | Avatar initials and customer name — e.g. FL / Facto Ltd. |
| Original Invoice | The invoice this credit note corrects — e.g. INV-2026-000002 or INV-2026-000001. Click the pill to open that invoice. |
| Status | Draft — created but not yet issued; can be edited or deleted. Issued — locked; the sequential CN reference has been assigned. |
| Total | The total credit amount — e.g. GBP 6.00 or GBP 100.00. |
| Action | View opens the full credit note detail page. |
Section 04
How to create a Credit Note
1 minute
Credit notes are always created from inside an invoice — there is no standalone "New Credit Note" button on the Credit Notes list page. The workflow is:
Open the invoice
Go to Invoices and open the issued invoice you need to correct — e.g. INV-2026-000002.
Click Create Credit Note
In the invoice footer, click Create Credit Note. This button appears on all Issued, Overdue and Paid invoices.
Fill in the credit note
A form opens pre-populated with the invoice's line items. Adjust quantities or prices, add a Reason, and optionally set a due date.
Review as Draft
The credit note is saved as a Draft. Review it carefully — check the corrects-invoice link, amounts and reason. You can still Edit or Delete it at this stage.
Issue the Credit Note
Click Issue Credit Note to lock it in. A sequential CN-YYYY-NNNNNN reference is assigned, dates are stamped, and the credit note becomes immutable. The invoice's balance is reduced by the credit amount.
If a customer returns goods in two separate batches, you can raise a separate credit note for each return. All credit notes against the same invoice are visible from the invoice's detail page. The 3 draft credit notes in the list — all against INV-2026-000002 — are an example of multiple credits against one source invoice.
Section 05
Draft Credit Note detail
2 minutes
After creating a credit note it lands in Draft status. Review all details carefully before issuing — this is your last chance to edit or delete it. The header shows "Draft Credit Note" and the detail footer offers Edit, Delete and Issue Credit Note.
Brytebuild
12, Deppman Street, SE17 3BG, London, London, united kingdom
Facto Ltd
12, spearman lane, SE18 3DG, "London", London, United Kingdom
| Description | QTY | Unit Price | Disc % | VAT % | Net | VAT |
|---|---|---|---|---|---|---|
| M6x12 hex nut, black zinc plated | 4 ea | 1.00 | — | — | 4.00 | 0.00 |
| Bamboo Handle | 2 ea | 1.00 | — | — | 2.00 | 0.00 |
VAT Breakdown
| Rate | Net | VAT |
|---|---|---|
| 0% | 6.00 | 0.00 |
| Element | What it shows |
|---|---|
| From (Seller) | Seller details — Brytebuild, 12, Deppman Street, SE17 3BG, London. Set in company settings. |
| Bill To (Customer) | Customer address — Facto Ltd, 12, spearman lane, SE18 3DG, "London", London, United Kingdom. |
| Corrects Invoice | A link to the source invoice — INV-2026-000002 ↗. Click to navigate directly to that invoice. |
| Issue Date | "Set at issue" while in Draft — the date is stamped automatically when you click Issue Credit Note. |
| Tax Point | Blank (—) in Draft. Stamped when issued — typically the issue date of the original invoice. |
| Reason | Free-text reason for the credit — e.g. x (test) or a meaningful description like "2 units returned — damaged". Appears in the list sub-label and on the PDF. |
| Line Items | 2 items being credited: M6x12 hex nut, black zinc plated (QTY 4 ea @ 1.00 = NET 4.00) and Bamboo Handle (QTY 2 ea @ 1.00 = NET 2.00). Total Credit GBP 6.00. |
| Edit | Opens the edit form to adjust quantities, prices, VAT or the reason before issuing. |
| Delete | Permanently deletes the draft credit note. Only available in Draft status. |
| Issue Credit Note | Locks the credit note, assigns the CN reference number, stamps issue date and tax point, and reduces the original invoice balance. This action is irreversible. |
Section 06
Issued Credit Note detail
2 minutes
After clicking Issue Credit Note, the credit note receives its sequential reference number (CN-2026-000002), dates are stamped, and it becomes immutable. An info banner and the footer message both confirm this. The Edit and Delete buttons are removed — only "Credit note issued" confirmation text remains.
Brytebuild
12, Deppman Street, SE17 3BG, London, London, united kingdom
Facto Ltd
12, spearman lane, SE18 3DG, "London", London, United Kingdom
| Description | QTY | Unit Price | Disc % | VAT % | Net | VAT |
|---|---|---|---|---|---|---|
| M6x12 hex nut, black zinc plated | 4 ea | 1.00 | — | — | 4.00 | 0.00 |
| Bamboo Handle | 2 ea | 1.00 | — | — | 2.00 | 0.00 |
VAT Breakdown
| Rate | Net | VAT |
|---|---|---|
| 0% | 6.00 | 0.00 |
| Element | What changes after issuing |
|---|---|
| CN-2026-000002 | The sequential reference is now assigned. Draft credit notes show "draft" in the list — the CN-YYYY-NNNNNN number only exists after issue. |
| Issued badge (green) | Status changes from Draft to Issued. |
| Issue Date: 2026-08-04 | Automatically stamped with today's date when Issue Credit Note is clicked. |
| Tax Point: 2026-06-21 | Stamped with the issue date of the original invoice (INV-2026-000002 was issued on 21 Jun 2026), not the credit note issue date. |
| Immutable banner | "Issued credit notes are immutable — they cannot be edited or deleted." Appears at the top of the page and again in the footer. |
| ✓ Credit note issued (footer) | Green confirmation text replaces the Edit / Delete / Issue buttons. No further actions are available on the credit note itself. |
| Effect on original invoice | The original invoice balance is reduced by GBP 6.00. If the invoice was fully covered, its status changes to Credited. |
Section 07
Status lifecycle
1 minute
Credit notes have a simple two-status lifecycle.
The credit note has been created from an invoice but not yet issued. It appears in the list with italic "draft" in the reference column — no CN number exists yet. You can edit the line items, prices, reason and due date, or delete it entirely.
→ Click Issue Credit Note to lock and assign the reference
The credit note is locked and immutable. A sequential CN-YYYY-NNNNNN reference is assigned. Issue date and tax point are stamped. The original invoice balance is reduced by the credit amount. No further edits or deletions are possible — the credit note is a permanent audit record.
→ No further actions (read-only permanent record)
| Status | How it gets there | Editable? | Available actions |
|---|---|---|---|
| Draft | Created via Create Credit Note on an issued invoice. | Yes | Edit, Delete, Issue Credit Note |
| Issued | Issue Credit Note clicked — reference assigned, dates stamped. | No (immutable) | View only — "Credit note issued" confirmation. No buttons. |
Once a credit note is issued it is permanent. If you issued it in error, you cannot delete or void it — the CN reference and the credit against the original invoice remain in the audit trail permanently. Double-check all amounts and the reason before clicking Issue Credit Note.