How to Issue a Credit Note
You can adjust invoices automatically to correct canceled classes or billing errors by issuing credit notes.
What is a credit note?
How to issue a credit note?
Through the Invoices Tab
Through the Credit Notes Tab
What happens after you issue a credit note?
How to void a credit note?
A credit note is an official document issued to a customer (in this case a student, or their parent) that indicates a reduction in the amount payable for services previously invoiced. This might be needed when:
A student drops out mid-term and you decide to refund or credit unused sessions.
A class was canceled and you’ve already invoiced it.
You need to adjust for an overcharge or pricing correction.
Instead of refunding the amount in cash or making manual adjustments, a credit note allows you to:
Document the adjustment formally
Apply the credited amount to future invoices
Maintain a clear audit trail for your records
Let’s say you run a football coaching academy, and you’ve invoiced 10 sessions for $5,000 to a student, Adam. But Adam falls ill and misses the last 4 sessions. You decide to offer credit for the missed classes.
You issue a credit note worth $2,000 for the 4 unused sessions. This credit is reflected in his account, and when he signs up again for a future batch, the $2,000 is automatically deducted from the new invoice. Everyone's happy—your books are clean, and your student gets value for the missed classes.
Navigate to the Billing main menu on the left side of the screen. Under the Invoices tab, click on the invoice against which you wish to issue a credit note. Alternatively, you could search for a particular invoice by typing the respective details in the Search invoices box.
This will open a comprehensive page with all the invoice details. Click on the Add credit note option above the detailed invoice.
The Issue credit note page will appear. Some of the details such as the Invoice number, Credit note ID, Date of issue and Reason will be auto-populated. You may edit them as required.
You can choose the Reason for issuing a credit note from the drop-down menu. The reasons you may choose include: Duplicate charge, Item unsatisfactory, Order change, and Other reasons. Optionally, you may add an Internal note for future reference.
From the list of Credit items, you can select/deselect the items against which you wish to issue credit by checking the boxes on the left. You may change the Credit quantity and Price by entering the altered amount.
You can then choose how to issue the credit amount to the customer.
In the case of an unpaid invoice, the default manner of issuing credits to the customer will be Invoice credit - Applied to invoice, as shown under the How to credit? heading.
In the case of a paid invoice, you can choose how to issue credits under the How to credit? heading. The default option remains Invoice credit - Added to balance. To choose an alternate method, click on the + Also credit to option and choose the desired option from the drop-down menu. Add the credit amounts next to each option.
For example, for a total credit amount of $5000, you may credit $2000 as Invoice credit - Added to balance, and choose to refund $3000 via cash.
Select/deselect the Send an email checkbox on the top right corner, to enable or disable the sending of the credit note as an email to the customer.
Then, click on Save. Your credit note is created.
Navigate to the Billing main menu and head to the Credit Notes tab.
Click on the Add credit note button on the top right corner.
The Issue credit note page will appear. Search for the Student/Lead and the corresponding Invoice from the drop-down menus. Enter the Credit note ID.
Now follow the same steps as above, step 4 onwards.
💡 You can view your credit notes under the Billing main menu > Credit notes.
Here’s what issuing a credit note does:
It reduces the outstanding balance or cancels the selected line items from an invoice.
The credited amount can be applied to a future invoice for the same student.
It helps ensure accurate end-of-month accounting and smooths your reconciliation process.
You may want to void (cancel) a credit note if there was an error in issuing it initially, or if the situation it addressed has changed. Voiding a credit note means it's no longer valid and won't be reflected in the customer's account.
Navigate to the Billing main menu and head to the Credit notes tab.
Click on the respective credit note which you wish to make void. This will open a comprehensive page with all the credit note details. Click on the Void button above the credit note.
On the pop-up that appears, click Yes, void to confirm your choice. The Credit Note status will change to Void.
💡 Only those credit notes which have been issued against unpaid invoices can be voided. Moreover, c**redit notes that have any Refund associated with them cannot be voided.**
Content
What is a credit note?
How to issue a credit note?
Through the Invoices Tab
Through the Credit Notes Tab
What happens after you issue a credit note?
How to void a credit note?
What is a Credit Note?
A credit note is an official document issued to a customer (in this case a student, or their parent) that indicates a reduction in the amount payable for services previously invoiced. This might be needed when:
A student drops out mid-term and you decide to refund or credit unused sessions.
A class was canceled and you’ve already invoiced it.
You need to adjust for an overcharge or pricing correction.
Instead of refunding the amount in cash or making manual adjustments, a credit note allows you to:
Document the adjustment formally
Apply the credited amount to future invoices
Maintain a clear audit trail for your records
Let’s say you run a football coaching academy, and you’ve invoiced 10 sessions for $5,000 to a student, Adam. But Adam falls ill and misses the last 4 sessions. You decide to offer credit for the missed classes.
You issue a credit note worth $2,000 for the 4 unused sessions. This credit is reflected in his account, and when he signs up again for a future batch, the $2,000 is automatically deducted from the new invoice. Everyone's happy—your books are clean, and your student gets value for the missed classes.
How to Issue Credit Notes
Through the Invoices Tab
Navigate to the Billing main menu on the left side of the screen. Under the Invoices tab, click on the invoice against which you wish to issue a credit note. Alternatively, you could search for a particular invoice by typing the respective details in the Search invoices box.
This will open a comprehensive page with all the invoice details. Click on the Add credit note option above the detailed invoice.
The Issue credit note page will appear. Some of the details such as the Invoice number, Credit note ID, Date of issue and Reason will be auto-populated. You may edit them as required.
You can choose the Reason for issuing a credit note from the drop-down menu. The reasons you may choose include: Duplicate charge, Item unsatisfactory, Order change, and Other reasons. Optionally, you may add an Internal note for future reference.
From the list of Credit items, you can select/deselect the items against which you wish to issue credit by checking the boxes on the left. You may change the Credit quantity and Price by entering the altered amount.
You can then choose how to issue the credit amount to the customer.
In the case of an unpaid invoice, the default manner of issuing credits to the customer will be Invoice credit - Applied to invoice, as shown under the How to credit? heading.
In the case of a paid invoice, you can choose how to issue credits under the How to credit? heading. The default option remains Invoice credit - Added to balance. To choose an alternate method, click on the + Also credit to option and choose the desired option from the drop-down menu. Add the credit amounts next to each option.
For example, for a total credit amount of $5000, you may credit $2000 as Invoice credit - Added to balance, and choose to refund $3000 via cash.
Select/deselect the Send an email checkbox on the top right corner, to enable or disable the sending of the credit note as an email to the customer.
Then, click on Save. Your credit note is created.
Through the Credit Notes Tab
Navigate to the Billing main menu and head to the Credit Notes tab.
Click on the Add credit note button on the top right corner.
The Issue credit note page will appear. Search for the Student/Lead and the corresponding Invoice from the drop-down menus. Enter the Credit note ID.
Now follow the same steps as above, step 4 onwards.
💡 You can view your credit notes under the Billing main menu > Credit notes.
What Happens After You Issue a Credit Note?
Here’s what issuing a credit note does:
It reduces the outstanding balance or cancels the selected line items from an invoice.
The credited amount can be applied to a future invoice for the same student.
It helps ensure accurate end-of-month accounting and smooths your reconciliation process.
How to Void a Credit Note
You may want to void (cancel) a credit note if there was an error in issuing it initially, or if the situation it addressed has changed. Voiding a credit note means it's no longer valid and won't be reflected in the customer's account.
Navigate to the Billing main menu and head to the Credit notes tab.
Click on the respective credit note which you wish to make void. This will open a comprehensive page with all the credit note details. Click on the Void button above the credit note.
On the pop-up that appears, click Yes, void to confirm your choice. The Credit Note status will change to Void.
💡 Only those credit notes which have been issued against unpaid invoices can be voided. Moreover, c**redit notes that have any Refund associated with them cannot be voided.**
Updated on: 28/05/2025
Thank you!