What if the credit note doesn cancel out the whole invoice?
If the credit note only settles part of the invoice, then follow the same steps, but when you enter the invoice receipt, only enter the amount that’s covered by the credit note. This is so that the receipt and payment in the bank account are the same, and so that the amount of the invoice that isn’t covered by the credit note still shows as due, like this. That’s the end of this article. You’ve seen how to settle a sales invoice and a matching credit note.
