## Zoho Invoice — Product, features, payments, integrations, solutions, and help Index

Access the complete documentation index at:
https://www.zoho.com/invoice/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Credit Notes

Credit Note is a document given by the seller to their customer to denote the amount of money they owe to that particular customer. 

# Understanding Credit Notes

Credits in Zoho Invoice represent the money that you owe your customer. A credit note is issued in the customer’s name in order to keep track of the debt until it’s paid off. The debt remains until it’s refunded or subtracted from the next invoice, which you send to your customer. 

**Scenario:** Sam owns a stationery store. One of his customers has returned two of the purchased products due to defects in them. Now, Sam owes his customer the money for the products he returned. He will either directly return the money to his customer or deduct it in his future invoices. So he raises a credit note to track this down.

## Creating a Credit Note

Learn about creating credit notes from various modules in Zoho Invoice.

*   **[Creating a new Credit Note](/invoice/help/credit-note/new-credit-note.html)**

## Closing a Credit Note

Know the ways by which you can close a credit note.

*   **[By Applying to Invoice](/invoice/help/credit-note/closing-a-credit-note.html#apply-to-invoice)**
*   **[Refund](/invoice/help/credit-note/closing-a-credit-note.html#refund-credit-note)**

## More with Credit Notes

Know about the other actions that can be carried out in the **Credit Note** module.

*   **[More with Credit Notes](/invoice/help/credit-note/more-with-credit-notes.html)**

## Managing Credit Notes

List the credit notes based on your preference.

*   **[Filter Views](/invoice/help/credit-note/manage-credit-notes.html#filter-views)**
*   **[Custom Views](/invoice/help/credit-note/manage-credit-notes.html#custom-views)**

## Credit Note Preferences

Configure Credit Note Preferences

*   **[Terms & Conditions and Customer Notes](/invoice/help/credit-note/credit-note-preferences.html#t&c-notes)**
*   **[Custom Fields](/invoice/help/credit-note/credit-note-preferences.html#custom-fields)**