How do I add a credit note to an invoice?

Adding a credit note

1. Go to the Invoices page and open the invoice you want to credit.
2. Select the Credit note tab.
3. Click Add credit note.
4. Upload the credit note PDF to the PDF Credit Note panel. Drag and drop the file or browse to select it.
5. Enter the credit note number and date.
6. Review the fees, disbursements and tax amounts. These are pre-filled with the invoice's full amounts:
   • Full credit note: leave them as they are.
   • Partial credit note: change them to the amounts you are crediting.
7. Click Save.

Note: The Save button stays disabled until you upload a PDF.

The credit note is automatically linked to the original invoice, and uses the invoice's client, matter and currency. You don't need to enter these.

You can also add a credit note from the matter. Open the matter, go to the Invoices section, select the invoice and open the Credit note tab.

Who can add a credit note?

Only law firm users that can upload invoices can submit credit notes. Clients cannot create credit notes on your behalf.

When can I add a credit note?

You can add a credit note to an invoice if:

• It is in Draft, Queried or Void status
• It does not already have a credit note. Each invoice can have one credit note

You cannot add a credit note to an invoice that is In review, Approved or Paid. 

Note: If you need to credit an invoice that is in review, please submit a Invoice Recall request. This will notify your client to query the invoice allowing you to submit the credit note. 

Full and partial credit notes

Credit notes can be entered for the full value of an invoice or for only part of the invoice value.

Full credit notes

To cancel an invoice in full:

1. Make sure the invoice is in Queried status. An invoice can only be voided once it has been queried.
2. Open the invoice and void it.
3. Add a credit note for the full value of the invoice.

When the invoice is Void, the credit note must equal the invoice exactly, with the same fees, disbursements and tax. If the amounts differ, you'll see the message "Credit values must match the cancelled invoice." and won't be able to save.

Partial credit notes

To credit part of an invoice, add a credit note while the invoice is in Draft or Queried status. Then reduce the fees, disbursements and/or tax to the amount you are crediting.

Note: Each invoice can have only one credit note. Make sure the credit note covers the full reduction you have agreed with your client.

What happens when I add a credit note?

Your client

• Invoice in Queried or Void status: your client can see the credit note and its PDF as soon as you save it.
• Invoice in Draft status: your client sees the credit note when you submit the invoice. Until then, only your firm can see it.
• Your client sees an entry in the invoice history: Credit note attached by [your firm name].
• Credit notes don't go through your client's approval workflow. They have no status of their own.

The original invoice

• The status doesn't change. A Queried invoice stays Queried, and a Draft invoice stays Draft. Continue the invoice as normal, for example by responding to the query or submitting the draft.
• The amounts on the invoice don't change. The invoice keeps its original fees, disbursements and tax. The credit note is shown separately, as a negative amount in brackets, against the invoice.
• You can't add another credit note to the invoice, even if you later void the credit note.

Where the credit note appears

• On the invoice's Credit note tab, with the credit note number, date, invoice number and total
• In your Invoices list, as a linked row directly under the original invoice
• On the matter, alongside the original invoice

Spend reporting

On an invoice your client has received, the credited fees and disbursements are deducted from the matter's spend. Tax is not deducted. The deduction is dated to the credit note date.

A void invoice is already excluded from spend, so a full credit note on a void invoice doesn't reduce spend a second time.

Editing a credit note

You can edit a credit note while the invoice is in Draft, Queried or Void status.

1. Open the invoice and select the Credit note tab.
2. Click Edit credit note.
3. Make your changes and click Save.

Note: You can't change the credit note number after it has been saved.

Voiding a credit note

You can void a credit note if the invoice is in Queried or Void status.

1. Open the invoice and select the Credit note tab.
2. Click Void credit note.
3. Confirm by clicking Void credit note again.

A voided credit note stays visible for audit purposes, and its PDF is marked Voided.

Important: After you void a credit note, you can't add a new credit note to the same invoice, and you can't reuse the credit note number. Before you void a credit note, check whether editing it would be enough.

Frequently asked questions

Can I add more than one credit note to an invoice? No. Each invoice can have one credit note. For a partial credit, make sure the credit note covers the full agreed reduction.

Can I add a credit note to an approved or paid invoice? No. Ask your client to query the invoice first, and then add the credit note.

Does adding a credit note void the original invoice? No. The invoice's status doesn't change. To cancel an invoice in full, void it first (it must be Queried), and then add a credit note for the full amount.

Should I use a credit note or replace the invoice? To correct an invoice and issue a new one, replace it instead. See How do I edit or replace an invoice?. Use a credit note when you need a formal credit document against the original invoice.

Can I reuse a credit note number? No. Each credit note number must be unique within your firm. This includes numbers from voided credit notes.

Will my client be notified when I add a credit note? Apperio (e-Billing) doesn't send a separate notification for credit notes. Your client can see the credit note on the invoice and in its history.

What currency is the credit note in? The same currency as the original invoice.

Can I add a credit note to a LEDES invoice? No. The Credit note tab is available on PDF invoices only.

Need more help?

Contact Apperio (e-Billing) Support.