How to Create a Credit Note

A credit note is the correct way to cancel or reduce an invoice once it has been issued. It keeps your accounting records and GST returns accurate.

When do you need a credit note?

• You invoiced for the wrong amount
• A client returned goods or cancelled a service
• You want to give a discount after the invoice was sent

Step 1 — Go to Credit Notes

Click Credit Notes in the left navigation, then click + New Credit Note.

[Screenshot: Credit Notes section with New Credit Note button]

Step 2 — Link to the Original Invoice

Select the client, then choose the original invoice from the dropdown. The credit note is linked to that invoice for your records.

[Screenshot: Credit note form with invoice selected]

Step 3 — Add Line Items

Add the items you are crediting — these can be the full invoice amount or just a partial amount. The total will show as a negative amount (a credit).

[Screenshot: Credit note line items]

Step 4 — Add a Reason (optional)

Use the notes field to explain why the credit note was issued. This is helpful for your own records and for the client.

Step 5 — Save and Send

Click Save to keep it as a draft, or Save & Send to email it to the client. You can also download the PDF.

[Screenshot: Saved credit note with download and send options]

Tip: In New Zealand, credit notes must be issued with the same GST treatment as the original invoice. MyBillDash handles this automatically when you link to the original invoice.