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A credit note reduces what a customer owes on an invoice. You draft it, review it, issue it, and then allocate its balance across the customer’s invoices.

Credit note states

Issue and apply a credit note

1

Create a draft

Create a draft against an invoice. Send the invoice_id, the credit amount, and a reason. currency and description are optional. A draft stays editable and doesn’t change any balances until you issue it.
See Create draft credit note.
2

Review, update, or discard the draft

Before issuing, change the amount or reason with Update draft credit note, or discard the draft with Delete draft credit note.
3

Issue the credit note

Issuing moves the credit note from DRAFT to ISSUED. It:
  • locks the credit note from further edits
  • assigns a sequential code, for example CN-2026-0089
  • makes the full credit amount available to settle invoices
  • generates the PDF, which you can fetch with Download credit note PDF
4

Apply the credit to an invoice

Allocate credit to reduce the amount due on an unpaid invoice. Send the amount and invoice_id, with optional notes. If you use the whole balance, the credit note becomes fully applied. Otherwise it stays partially applied until the rest is used.
See Apply credit note and Get allocations.

Refund a credit note

Instead of applying the balance to an invoice, you can return it to the customer’s payment method with Refund credit note.

Void a credit note

If a credit note was issued by mistake, void it. Voiding revokes any unapplied balance, records the reason, and sets the status to VOIDED.
To create and issue in one flow, call Create draft credit note and follow it immediately with Issue credit note. Query credit notes in any state with List credit notes.
Last modified on November 10, 2026