Credit Notes

The Credit Notes section in Billing Now allows you to issue credits or refunds related to existing invoices.
You can create a credit note linked to a specific invoice or manually for custom adjustments.

📂 Credit Note Management Dashboard

Note

Go to Sidebar → Credit Notes

The Credit Notes dashboard lists all your credit transactions and their details.

Column	Description
Credit Note No	Unique identifier (e.g. CN-001).
Client	The customer receiving the credit.
Credit Note Date / Due Date	Dates of issue and payment.
Total	Total amount credited.
Payment Date / Paid	Date and amount refunded (if applicable).
Status	Current progress (Draft, Sent, Paid, Refunded).
Created At	Record creation date.
Actions	Edit, view, delete, or download.

Note

⚪ Draft – Not yet finalized.
🟠 Not Sent – Finalized but not yet sent to client.
🔵 Sent – Credit note shared with client.
🟢 Paid – Fully paid credit note.
🟡 Partially Paid – Partial payment received.
🔴 Cancelled – Invalid or voided credit note.

➕ Creating a New Credit Note

To create a new credit note, click the “Create Credit Note” button in the top-right corner.

🧾 Step 1: Select or Add Client

Note

Choose an existing client from the dropdown. Or type a new client name to create one instantly.

🗓️ Step 2: Fill Credit Note Details

Enter the key details to identify your credit note.

Field	Description
Credit Note Number	Automatically generated or manually edited.
Credit Note Date	Date when the note is created.
Due Date	When the credit should be applied.
Currency	Select the currency used.
Related Invoice (optional)	Link this credit note to a specific invoice.

Tip

Linking to an existing invoice automatically imports client and amount details for faster setup.

🧮 Step 3: Add Credit Lines

Note

Click Add Line to list refunded or corrected items.
Each line includes:

Item name or description
Quantity
Unit price
Tax (optional)

Use the Show items with tax toggle if the refund includes tax adjustments.

Note

Show items with tax: Determines whether item prices are entered and displayed as gross (with tax) or net (without tax). Totals are shown accordingly, and slight differences may appear due to rounding when conv

📝 Step 4: Customize Extra Fields

Under the Extra section, personalize your credit note.

Field	Description
Text Before Items	Introductory message (e.g., “Refund due to duplicate charge”).
Text After Items	Additional explanation (e.g., “Applied as account credit”).
Footer	Legal or accounting details for reference.

Example:

💬 “This credit note offsets invoice INV-001 issued on Oct 1, 2025.”
🧾 “Please contact info@cappsule.io for clarification.”

When finished, you can:

Action	Description
Save as Draft	Keep editable for review.
Save (Not Sent)	Finalize the credit note but keep it as “Not Sent” status.
Send	Send the credit note via BillingNow’s email system.
Mark as Sent	Mark credit note as sent (for manual sending via your own email).
Download PDF	Download the credit note as PDF for manual distribution.
Edit	Modify the credit note details.
Delete Credit Note	Permanently remove the credit note from your system.
Cancel	Discard changes without saving.

Tip

Always preview the credit note before saving. Once confirmed, the credit can automatically adjust the related invoice balance.

💌 Sending Credit Notes via Email

You can share credit notes with your clients in two ways:

1️⃣ Send Directly from BillingNow

Use the “Send” button to deliver the credit note automatically from the system. BillingNow will send a professional email to the client, including:

The credit note PDF as an attachment
The credit note summary (number, total, and due date)
A short personalized message

Example of email preview:


Subject: Credit Note CN-2
Body:
Dear Mrs Emma Moreau,

Please find attached your credit note CN-2.

Thank you for your business.

Best regards,
Cappsule

Options:

You can customize the subject and message body before sending.
Once sent, the credit note status changes to Sent, and a timestamp is recorded in the dashboard.
The client’s email address is automatically taken from their profile.

Tip

Make sure your client’s contact email is correct in the Client Details section to ensure successful delivery.

2️⃣ Send Manually from Your Personal Email

If you prefer to use your own mailbox (e.g., Outlook, Gmail):

Click Download PDF on the credit note.
Attach the downloaded file to your personal email.
Write your own message and send it manually.
After sending manually, return to the credit note and click Mark as Sent to update its status in BillingNow.

Email Sending Status

Once an email is sent from BillingNow:

The status icon changes from 🟠 Not Sent to 🔵 Sent.
The Sent Date column displays the exact timestamp.
You can Resend the credit note anytime from the Actions menu.

💰 Step 5: Add Payment

Once a credit note has been sent to a client, you can record payments received:

Note

Payments can only be added to credit notes with “Sent” status. Draft and “Not Sent” credit notes cannot receive payments until they are sent.

To add a payment:

Select the credit note from your credit note list actions
Click “Add Payment” button (available only for sent credit notes)
Enter payment details:
- Reference
- Payment date
- Payment amount
- Payment method (Bank Transfer, Credit/Debit Card, Cash, Check, PayPal, Other)
Save the payment

The credit note status will automatically update based on the payment:

Partially Paid - If payment is less than the total amount
Paid - If payment equals or exceeds the total amount

🔁 Applying Credit to an Invoice

Tip

If the credit note is linked to an invoice:
1️⃣ The amount will be deducted from the invoice total.
2️⃣ The invoice status will update to reflect the new balance.
3️⃣ Both documents remain linked for accounting traceability.

💡 Best Practices

Note

✔ Always link credit notes to their original invoices when applicable.
✔ Use consistent numbering (e.g. CN-001, CN-002).
✔ Record the reason for each credit note in the footer for transparency.
✔ Export monthly reports to track refunds and corrections.