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Invoices & Documents

Credit Note & Cancellation

Correct invoices: the difference between a credit note and a cancellation, the reference to the original invoice and correct numbering.

1 min readDesktopMobileLast updated on September 6, 2026

Instructions for the Billance desktop app on Windows, macOS and Linux.

Credit notes and cancellations are created from an existing invoice and remain linked to it through the document chain. Both use the Credit note/cancellation document type but represent different business operations.

Credit note

A credit note reduces an invoice fully or partially. You can transfer and adjust line items and quantities. For an invoice with a cash discount, the correction flow decides whether the amount actually paid is taken into account.

Cancellation

A cancellation reverses the complete source invoice. Billance transfers the original data, sets the appropriate correction type, and links the cancellation document to the cancelled invoice.

E-invoice

When the source invoice was structured, the correction can also be generated as an e-invoice. Matching invoice type codes and the preceding-invoice reference are used. Review the generated file before sending it.

Desktop app

Open a finalized invoice and choose Create credit note or Cancel from its action menu. The correction draft opens in a new tab.

Credit notes and cancellations are advanced Premium document features.

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