Advanced: Credit Notes

For users who already know the basics — this guide covers numbering conventions, VAT handling, the apply workflow, financial reporting impact, and filtering strategies.

Numbering and Document Format

Credit notes are numbered automatically with a CN- prefix (e.g. CN-2026-000001), separate from your invoice numbering sequence. This clear distinction helps your accountant immediately identify credit notes in the ledger.

The PDF layout mirrors your invoice format: company logo, client address block, line items with descriptions and amounts, VAT summary, and payment reference. When linked to an invoice, the original invoice number appears prominently so the client can match the documents.

Credit notes follow a clear lifecycle:

1. Draft — editable, not yet sent to the client.
2. Sent — emailed or marked as sent. Content is now locked.
3. Applied — the credit has been applied to the linked invoice's balance.
4. Voided — cancelled. Remains in the system for audit but has no financial effect.

The activity log on each credit note tracks every status change with timestamps and the user who performed the action.

VAT Handling

Credit notes follow the same VAT rules as invoices. Each line item carries its own VAT rate, and the document shows a full VAT breakdown. When creating a credit note from an invoice, VAT rates are copied from the original line items automatically.

For VAT reporting, credit notes reduce your VAT liability for the period in which they are issued. Example: if you invoiced CHF 1,000 + CHF 81 VAT (8.1%) and then create a full credit note, that CHF 81 is deducted from your VAT obligations for the current period.

Your financial export includes credit notes alongside invoices, so your accountant can reconcile the net VAT position correctly. If your organisation is not VAT-registered, all credit notes show 0% VAT — the same rule as invoices.

Applying Credits to Invoices

The Apply action is what adjusts the linked invoice's outstanding balance. Sending the credit note notifies the client, but applying it is what updates the books. Always do both steps.

Key rules:

• A credit note can only be applied once.
• It can only be applied to the invoice it is linked to.
• For partial credits, the invoice remains open with a reduced outstanding balance. Payment reminders will reference the adjusted amount.
• For full credits, the invoice is effectively settled.
• Standalone credit notes (not linked to an invoice) cannot be applied — handle the offset in your bookkeeping software.

After application, both the credit note and invoice activity timelines reflect the updated status.

Credit Notes in Financial Reporting

Credit notes appear in all financial exports and reduce your reported revenue. If you issued CHF 10,000 in invoices and CHF 500 in credit notes for a period, your net revenue is CHF 9,500.

The credit note index page shows summary statistics: total count, total value in draft, sent, and applied states. Use these to spot unsent drafts or a rising trend that might indicate billing process issues.

The date filter is especially useful at quarter-end for VAT returns — filter to the quarter's date range and you get the exact credit note total to offset against invoice revenue.

Related Guides

• Modules-Gutschriften — basic setup and daily workflow
• Modules-Rechnungsstellung — invoice lifecycle and voiding