Use a credit note to correct a finalized invoice, for example after an error or a cancellation. You can credit the full invoice or only part of it.
Create a Credit Note
Open the finalized invoice. Go to Financials > Invoices, or open the budget's Invoices tab.
Click the three-dot menu in the upper right corner and select Create credit note.
đ You can't create credit notes for draft invoices.
Productive creates a draft credit note for the full invoice amount that hasn't been credited yet. To credit only part of it, edit the draft before you finalize.
Click Finalize once the amounts are correct. All line items on a credit note have negative quantities, so the amounts are negative too.
đ If you send the credit note as an e-invoice, keep the rate positive. E-invoicing standards don't allow negative unit prices.
Send the Credit Note
After you finalize the credit note, click Send to client to open the email editor. Sending works the same way as for invoices.
đ Learn how to send an invoice to a client.
Invoice and Credit Note Links
A finalized invoice with a credit note shows a link to that credit note.
The credit note links back to the original invoice.
Time and Expenses on the Original Invoice
When you create a credit note, the time entries and expenses from the original invoice become uninvoiced again. This happens as soon as the draft credit note exists. You can then add them to a new invoice or edit them.
If you delete the credit note (draft or finalized), they're linked back to the original invoice and marked as invoiced again. This runs in the background and can take a moment.
đ This also applies to partial credit notes. Productive releases all time entries and expenses in the credit note's date range, not only those that match the credited amount.
Restrictions
Once an invoice has a finalized credit note, you can't edit or delete the invoice. To make changes, delete the credit note first.
If the invoice only has a draft credit note, you can still delete the invoice. This also deletes the draft credit note.
Viewing Credit Notes
In Invoice Views
Credit notes appear as invoices in reports and in the invoice views of budgets and the main navigation. These fields behave differently for invoices and credit notes:
Amount Credited: shows the value of finalized credit notes on the invoice, and zero on the credit note
Amount Paid: always zero on a credit note
Amount Unpaid: goes down by the credited amount on the invoice, and reaches zero if the credit note covers the full invoice
Example: You issue an invoice for 5,000 (no tax), and the client hasn't paid yet. You create and finalize a credit note for 2,000. The invoice now shows 2,000 in Amount Credited and 3,000 in Amount Unpaid.
In Budget Views
Credit notes reduce the invoiced amount on a budget. If you credit an entire invoice, the budget shows nothing invoiced for it, so that amount is ready to invoice again.