Reverse a Paid Invoice with a Credit Note

A credit note reverses an eligible paid invoice while keeping both records available for history. The current workflow creates a full reversal, not a partial line refund.

Permission required

Owners have full access. Managers and staff need Invoices access, invoice-update permission and access to the invoice location.

Before you reverse

Confirm the invoice number, customer, items, location, total, payment status and the business reason for reversal. An invoice must be fully Paid and must not already be Credited.

Create the credit note

1. Open Sales & Billing → Invoices.
2. Select Manage on the paid invoice.
3. Select Credit Note.
4. Read the confirmation, including the full invoice value that will be reversed.
5. Confirm that this is the correct invoice and a full reversal is intended.
6. Select Confirm Credit Note.
7. Confirm the invoice status becomes Credited and the credit note appears on the invoice.

The credit note copies the invoice’s taxable value and GST split, marks the invoice credited, restores product stock for product lines, and locks further invoice changes.

Important information

This workflow reverses the billing record. It does not document or perform an arbitrary partial refund, cash payout or bank transfer. Handle any separate movement of money through your approved business process and professional accounting advice.

Warning

Credit notes are consequential and cannot be treated as an edit button. Do not create one to correct a draft field, change a customer, or test the interface.

If Credit Note is unavailable

Check that the invoice is fully paid, has not already been credited, and your user has invoice-update and location access. Preserve the invoice details and contact Yepsta Support if an eligible record still cannot be reversed.

Related guides

• Create and Manage Invoices
• Record Payments and Use Customer Wallet Credit
• Use GST Reports and Review Input Tax Credit

Last reviewed: 12 July 2026