> ## Documentation Index
> Fetch the complete documentation index at: https://zenskar.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit notes

A **credit note** is a document issued by a seller to a buyer, indicating a reduction in the amount that the buyer owes to the seller.

> 🔖 Note
>
> * **Approved**, **partially paid**, and **paid** invoices cannot be edited. Therefore, credit notes must be issued to amend such invoices.
> * Draft invoices can be directly edited. Therefore, credit notes do not apply to draft invoices.
>
> Refer to the documentation on the [life cycle of a invoice](/docs/20240301/product-modules/invoices/life-cycle-of-an-invoice) for more details.

Some prominent reasons for issuing a credit note are listed below:

* **Billing errors**: if the buyer was overcharged (e.g., an incorrect amount was invoiced), a credit note corrects the error.
* **Discounts**: sometimes, sellers issue credit notes as a result of post-sale discounts or price adjustments.
* **Returns**: if the buyer returns goods or products, the seller issues a credit note to reduce the amount owed.
* **Damaged goods**: if goods received by the buyer are damaged or defective, the seller may issue a credit note to reflect the compensation or price reduction.

## Create a credit note

1. Navigate to the **Invoices** page in the left side panel.
2. Select the **approved**, **partially paid**, or **paid** invoice against which you wish to issue a credit note.

![](https://assets.zenskar.com/20240301/invoices-credit-notes-create-a-credit-note.png)

3. On the **View Invoice** page, click on the **ISSUE CREDIT NOTE** button, as shown below:

![](https://assets.zenskar.com/20240301/invoices-credit-notes-create-a-credit-note-02.png)

4. Fill in the credit note details, and click on the **Submit** button on the **Issue Credit Note** form, as shown below:

![](https://assets.zenskar.com/20240301/invoices-credit-notes-create-a-credit-note-03.png)

5. A new invoice will be generated. The credit note will appear as a line item in the new invoice.

![](https://assets.zenskar.com/20240301/invoices-credit-notes-create-a-credit-note-04.png)

## View credit notes

To view all credit notes issued against a specific invoice, navigate to the **Credit Notes** tab of the **View Invoice** page  of the invoice you are interested in.

![](https://assets.zenskar.com/20240301/invoices-credit-notes-view-credit-notes.png)

To view all credit notes Navigate to **Invoices** > **Credit Notes** in the left side panel.

![](https://assets.zenskar.com/20240301/invoices-credit-notes-view-credit-notes-02.png)