Options 1 – Create credit note from Invoice or Bill

  • Click into the invoice or bill you want to credit. Under the Options drop down select Add Credit Note.
  • If only part of the invoice or bill is being credited then adjust the quantity or unit price as required. 
  • If the whole invoice or bill is being credited then select the date appropriate for the credit note and click “Save” (to save draft) or “Approve”. 

You will also need to update the Total box as well. 

Option 2 – Create credit note not directly related to invoice or bill

  • Under invoices or bills select “New Credit Note”
  • Fill out credit note as needed.
    • Ensure you use the same contact name that is already within your contacts. If you don’t then Xero will not let you allocate it to an invoice or bill if the contact names don’t match. 
    • When done, click “Save” (to save as draft or for approval) or “Approve”
  • Once approved, if an invoice or bill is currently outstanding for that contact, Xero will ask if you want to allocate the credit to those invoices or bills. 
  • Enter the amounts to offset or if you don’t want to allocate, click cancel to allocate at some other time.