## Zoho Invoice — Product, features, payments, integrations, solutions, and help Index

Access the complete documentation index at:
https://www.zoho.com/ae/invoice/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Closing a Credit Note

There are two ways by which you can close a credit note:

*   Apply to Invoice
*   Refund

## Apply to Invoice

Credits that belong to a customer can be applied to an invoice that you’ve raised for the same customer. When applied, it will reduce the invoice amount accordingly. 

To apply credits to an invoice:

*   Go to **Credit Notes** on the left sidebar. 
*   Select the credit note that you want to apply to an invoice. Make sure that the invoices are in **Sent** status and the credit note is in **Open** status.
*   Click **Apply to Invoice** at the top. 

![Apply to Invoice](/invoice/help/images/credit-note/apply-to-invoice.png)

*   A list of invoices that you’ve created for that customer is displayed. 
*   Specify the amount to be applied for the invoices and click **Save**.

![Apply to Invoice](/invoice/help/images/credit-note/credits-applied.png)

*   The invoice amount and the available credit will be reduced accordingly.
*   If all the credits are used up, the status of the note will be changed to **Closed**.

This can also be done by opening the corresponding invoice and clicking **Apply Now** under the _Credits Available_.

![Apply to Invoice](/invoice/help/images/credit-note/credits-available.png)

## Refund

If you’ve refunded the amount you owed your customer by cash, you can record this in Zoho Invoice against the corresponding credit note created. To do this:

*   Go to **Credit Notes** on the left sidebar. 
*   Open the credit note which you want to refund and ensure it is in **Open** status.
*   Click the **More** dropdown and select **Refund**.

![Refund](/invoice/help/images/credit-note/refund-note.png)

*   Choose the date on which it was refunded, the payment mode, reference number (if any), the amount to be refunded and click **Save**.

## You might also find these helpful

[

### Credit Note Details Report

Learn how to view detailed reports on credit note details.

](/ae/invoice/help/credit-note/creditnotedetails-report.html?src=help-other-resources)[

### Generate Customer Statements

Learn how to generate customer statements with all transactions (invoices, payments, credit notes, and refunds) for a customer over a specific period.

](/ae/invoice/help/contacts/contact-details-page.html#view-customer-statements?src=help-other-resources)