There are two ways to create a credit note:

  1. Converting an existing invoice into a credit note

  2. Creating a credit note from scratch 


1. Converting an existing invoice into a credit note


You can issue a credit note against an invoice in just a few clicks! Let’s see how.


First, go to the Invoicing Dashboard > select the invoice for which you wish to create a credit note > click “More” > click “Create Credit Note” as highlighted below:



As you can see, you will be redirected to the Credit Note creation page, where all your details have already been added to the invoice.

In this case, you want to create a credit note for the complete invoice amount, just review the automatically created credit note and save.


In case you want to make some edits to your credit note, you can do that as well, as shown below.


For eg. I invoiced my client for two Refrens Books Essential Plans, and I want to create a credit note for one. I will just edit the quantity, as shown below.



Once you are done with all the changes, just click on ‘Submit.’


2. Creating A Credit/Debit Note From Scratch


Creating Credit/Debit Notes on Refrens is very similar to creating invoices.


Let’s see how:

Step 1: From the sidebar, go to Accounting > Credit Note/Debit Note


For this article, we will create a Credit Note. You can follow the same process for creating Debit Notes as well.




Step 2: Now, fill in all the necessary information, such as


  • Credit Note number

  • Credit Note date

  • Invoice against which you wish to issue the credit note

  • Reason for issuing the credit/debit note

  • Your Business Logo

  • Issued By which is automatically updated with your business details

  • Issued To where you add your client's details

  • Line Items - here add the services/products, amount, taxes, and any other details you want to show in your credit/debit note

  • Additional Details like Signature, Additional Notes, Terms & Conditions, Contact Details, etc.


Once you add all the details to your credit/debit note, click on ‘Save & Continue.’


Step 3: Customise & Share 


Once you save the credit/debit note, a preview page like shown below will open up.


You can customize various elements of your credit or debit note, such as:


  • Template

  • Font Style & Colour

  • Letterheads & Footers

  • Page Size, Margins & More 

  • Script

  • Other Configurations like text wrapping, logo image, & UPI ID characters.


Once done, you can print the credit/debit note, share it with your clients/vendors via WhatsApp, E-Mail, or download it as a PDF. 


You can also generate IRN. Learn more about generating IRN for credit/debit notes here.




Utilizing the Credits of a Credit Note to Settle Invoices

When you issue a credit note, you can apply those credits to settle future invoices for that client.

Once the credit note is generated, go to the invoice against which you want to settle the credit amount and click on ‘Mark Paid’:



A form to record the payment will open up, as shown below: 

Here, you will be able to see the amount of credit available for that client. You can apply this credit to either partially or fully settle the invoice.

When you click on ‘Use Credits’, you will find a list of all the credit notes issued and advances received from that client.



You can just enter the amount you wish to apply from the available credit notes or advance payments to settle the invoice.


Once done, just click on ‘Submit.’



Frequently Asked Questions


How to add invoice cancellation charges to a credit note?


To add cancellation charges or any deductions to your credit note, click on Add Discounts/Additional Charges > Give Discounts on Total


Here, add the amount you want to reduce from the credit note. 


You can also rename the field name, like I renamed Reductions to Invoice Cancellation Charges, as shown below.




That’s it! If you still have any questions, feel free to reach out to us on chat support. We would be more than happy to assist you:)