How to manage a credit note with a corresponding invoice

Learn how to adjust an invoice using a credit note to ensure you pay the correct amount.

Why this is important

A credit note reduces the amount owed on an invoice, helping you ensure accurate payments.

Scenario

You purchased 10 bales of hay, but during transit, 2 bales were damaged. The supplier issued a credit note for the damaged bales. Both the invoice and credit note are in your Needs Action screen.

Steps to match a credit note to an invoice

1. Go to Matching.
2. Select both the invoice and the credit note.
3. Click Link and Match.                                                                                                                                                                                        
4. Return to Needs Action. The invoice will now show as Partially Paid, with the total adjusted to the correct amount due.                                           
5. If using Bill Payment, only the adjusted amount will be displayed for payment.