Adjust Credit against Client Invoice

If you have issued a Credit Note to a client, you can use it to adjust the payment of any other invoice for the same client.

Steps to Apply a Credit Note to Another Invoice

Option 1 – Apply from Credit Note Details Page

1. Go to Billing → Credit Note.
2. Click on the required Credit Note.
3. Click the “Apply to Invoice” button (top-right corner).
4. In the popup window, choose the Invoice Number from the dropdown list.
5. Click OK.

Option 2 – Apply from Credit Note List View

1. Go to Billing → Credit Note.
2. On the desired credit note, click the 3 vertical dots (action menu).
3. Select Apply to Invoice (this option will only appear if the credit note is eligible).
4. In the popup window, choose the Invoice Number from the dropdown list.
5. Click OK.

Rules to Remember

• You cannot adjust credit across different clients. Only invoices belonging to the same client can be adjusted.
• A single credit note can be applied to multiple invoices, but only up to its total available amount.
• Once a credit note amount is fully used, it cannot be applied to any other invoice.
• Once credit is applied to an invoice, it cannot be reverted.
  • If you need to adjust again, a new credit note must be issued (for example, if the invoice is later cancelled).

Example

You have a Credit Note of ₹100 for Client A.

• Client A has Invoice 1 of ₹50 and Invoice 2 of ₹100.
• You can apply ₹50 to Invoice 1 (it becomes fully paid).
• You can then apply the remaining ₹50 to Invoice 2 (it becomes partially paid, ₹50 still outstanding).
• Once the total ₹100 is used, you can’t apply it to any other invoice.

If later Invoice 2 is cancelled, you must issue a new credit note for the remaining ₹50 to adjust it against another invoice.

System Updates Automatically

• Outstanding balance of the selected invoice.
• Client & Project Statements are updated to reflect the adjustment.