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Credit notes or write-offs serve to adjust the total payable amount from your clients. Credit notes act as negative invoices, effectively canceling any unpaid amounts you no longer want to pursue or invest effort in collecting. When issuing a credit note, you confirm the total outstanding balance reduction for a specific client. 

On the other hand, write-offs occur when a portion of the total outstanding remains unpaid, and you know that the client will be unable to pay while applying a payment.

Note: It's important to note that whether you issue a credit note or a write-off, the accounting treatment remains the same: it's recorded as a <code>Credit Note</code> with a unique identifier and essential details such as the date, customer information, and reason for issuance.

Open the <code>Billing</code> section from the left menu, and click on the <code>Invoice Number</code> to open the relevant invoice.

Click on <code>More Actions</code> on the top, and select <code>Add a Credit Note (Write-Off)</code>.

You will immediately notice the entire outstanding amount in the <code>Amount</code> section. Just add <code>Credit Note Reason</code> &amp; <code>Internal Note</code> (if applicable).

Finally, click on the <code>Save</code> button.

The credited amount will automatically be applied to the invoice, reducing the client's total outstanding balance.

1. Open the <code>Billing</code> section from the left menu, and click on the <code>Invoice Number</code> to open the relevant invoice.
2. Click on <code>More Actions</code> on the top, and select <code>Add a Credit Note (Write-Off)</code>.
3. You will immediately notice the entire outstanding amount in the <code>Amount</code> section. Just add <code>Credit Note Reason</code> &amp; <code>Internal Note</code> (if applicable).
 
 
4. Finally, click on the <code>Save</code> button.
5. The credited amount will automatically be applied to the invoice, reducing the client's total outstanding balance.

Apply a Write-off while Applying a Payment

Follow all the above steps until <code>More Actions</code>.

Choose <code>Add a Payment</code>, and enter the payment amount in the <code>Amount</code> section.

If the payment amount is less than the total outstanding balance, you'll see an option <code>Write off the Outstanding balance of &lt;Amount&gt; from Invoice &lt;Invoice Number&gt;</code>.

Select this option and apply it to the invoice.

1. Follow all the above steps until <code>More Actions</code>.
2. Choose <code>Add a Payment</code>, and enter the payment amount in the <code>Amount</code> section.
3. If the payment amount is less than the total outstanding balance, you'll see an option <code>Write off the Outstanding balance of &lt;Amount&gt; from Invoice &lt;Invoice Number&gt;</code>.
4. Select this option and apply it to the invoice.

You can also apply a 100% discount in the total discount field while creating an invoice or editing an existing one.

It's worth noting that whether you issue a credit note for the remaining amount or apply a write-off, the invoice's final status will be marked as paid if the client has already settled the remaining balance.

Steps to Apply a Credit Note/Write-Off

Apply a Write-off while Applying a Payment