Void an invoice or issue a credit note
Learn how to correct invoice errors by voiding the invoice or issuing a credit note. This helps you keep your financial records accurate and auditable.
This guide explains how to correct an invoice by either voiding it or issuing a credit note. Making the right choice ensures your financial reporting stays accurate and provides a clear audit trail.
When you send an invoice, it becomes part of your financial records. If you make a mistake, you cannot delete the invoice. Instead, you must reverse the transaction correctly by either voiding it or issuing a credit note.
Before you start
- You need permissions to create and manage invoices. Your role must be Admin or a custom role with billing permissions.
- Only invoices in
DraftorSentstatus can be voided or credited. Invoices that are already paid have a different workflow.
Decide whether to void or credit
Use this table to decide the best action for your situation. The main difference is whether a payment has been made or if the invoice is locked for accounting purposes.
| Situation | Best Action | Why |
|---|---|---|
| You sent the invoice to the wrong client, or it was a duplicate. No payment has been made. | Void | Voiding cancels the invoice entirely. It's the cleanest way to handle a mistake before any money changes hands. |
| The invoice has major errors in quantities or prices. No payment has been made. | Void | Void the incorrect invoice and create a new, correct one. This avoids confusion for your client. |
| Your client wants to cancel a service or return goods, and you have already sent the invoice. | Credit Note | A credit note formally reduces the amount the client owes. It can cover the full or partial invoice amount. |
| You need to offer a discount after sending the invoice, or the client has overpaid. | Credit Note | A credit note creates a credit on the client's account that can be applied to a future invoice or refunded. |
Void an invoice
You void an invoice when it should not have been created or sent, and no payment has been recorded against it. Voiding makes the invoice non-payable and removes its value from your financial reports, but it remains in the system for your records.
- From the main menu, navigate to Invoices.
- Find and open the invoice you need to void. You can use the search bar to find it by invoice number or client name.
- Once the invoice is open, click the More actions menu (...) in the top-right corner.
- Select Void Invoice from the dropdown menu.
- A confirmation window appears. It explains that this action cannot be undone.
- Click Void Invoice to confirm.
⚠️ Heads up: A voided invoice cannot be un-voided or edited. The invoice number is retired and will not be used again. This ensures a complete and unalterable history.able numbering sequence for your records.
Issue a credit note
You issue a credit note to reduce the amount a client owes on an existing invoice. This is common for returns, post-invoice discounts, or to correct a minor error on an invoice that has already been sent or paid.
- From the main menu, navigate to Invoices.
- Find and open the invoice you need to apply a credit to.
- Click the More actions menu (...) in the top-right corner.
- Select Create Credit Note.
- A new credit note is created, pre-filled with the details from the original invoice.
- Adjust the quantities or line item amounts. To issue a partial credit, change the value to the amount you want to credit the client. To issue a full credit, leave the amounts as they are.
- Review the credit note details, then click Save Credit Note.
- You will then be prompted to apply the credit to the original invoice, leave it as an open credit on the client's account for future use, or start a refund process.
Good to know
- Voiding paid invoices: You generally cannot void an invoice that has a payment recorded against it. You must first remove the payment, then you can void the invoice. If the payment was legitimate, you should issue a credit note and refund the client instead.
- Impact on reports: Voided invoices are marked as
Voidand are excluded from revenue reports. Credit notes appear on reports as a separate transaction that offsets the revenue from the original invoice. - Client communication: When you void an invoice or issue a credit note, your client receives a notification if you have email notifications enabled. This keeps them informed about the status of their account.