{"id":23129,"date":"2024-10-07T09:33:58","date_gmt":"2024-10-07T09:33:58","guid":{"rendered":"https:\/\/docs.daftra.com\/user_manual\/%d8%b9%d8%b1%d8%b6-%d8%aa%d9%82%d8%a7%d8%b1%d9%8a%d8%b1-%d8%a7%d9%84%d9%81%d9%88%d8%a7%d8%aa%d9%8a%d8%b1-%d8%a8%d8%a7%d9%84%d8%ad%d8%a7%d9%84%d8%a9-%d8%a7%d9%84%d8%b5%d8%ad%d9%8a%d8%ad%d8%a9-%d8%b9\/"},"modified":"2026-01-06T11:27:30","modified_gmt":"2026-01-06T11:27:30","slug":"display-invoice-report-with-the-correct-status-when-a-credit-note-is-added-to-the-invoice","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/display-invoice-report-with-the-correct-status-when-a-credit-note-is-added-to-the-invoice\/","title":{"rendered":"Display Invoice Report with the Correct Status when a Credit Note is Added to the Invoice"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1729666839886{margin-left: 200px !important;}&#8221;]Credit notes are documents that prove the seller added a credit balance to the client&#8217;s account as a refund or to correct a transaction error. The client can use this credit to pay future invoices or other payments.<\/p>\n<p>Transactions resulting from adding a credit note to a sales invoice may be processed incorrectly, which requires accounting adjustments.<\/p>\n<p data-pm-slice=\"1 1 []\">Now, we&#8217;ll take you through some scenarios of the system&#8217;s accounting response to adding a credit note to invoices, and demonstrate how to handle each of these cases correctly.<\/p>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-info&#8221; icon_fontawesome=&#8221;fas fa-book&#8221; css=&#8221;.vc_custom_1735643489278{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">Need more details about credit notes and how to use them?<\/p>\n<p style=\"text-align: left;\">Check the following articles:<\/p>\n<ul>\n<li><a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/credit-notes\/\">Creating a Credit Note\u00a0<\/a><\/li>\n<li><a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/issuing-credit-notes-and-return-invoices\/\">Issuing Credit Notes and Refund Invoices<\/a><\/li>\n<\/ul>\n<p>[\/vc_message][vc_custom_heading text=&#8221;Identify the Options of the Setting &#8220;Autopay Invoices if the Client Has Available Credit&#8220;&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1729667836527{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1729668195659{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">Invoice payment statuses are automatic statuses that are updated based on the payment transactions on the invoice without any manual intervention. The invoice status appears as &#8220;<strong>Paid<\/strong>&#8221; or &#8220;<strong>Unpaid<\/strong>&#8221; in the invoice as well as the invoices reports.<\/p>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-info&#8221; icon_fontawesome=&#8221;fas fa-book&#8221; css=&#8221;.vc_custom_1729668688812{margin-left: 200px !important;}&#8221;]More details about <a href=\"https:\/\/docs.daftra.com\/en\/?post_type=user_manual&amp;p=18883\"><strong>invoices tags, manual, and automatic statuses <\/strong>here<\/a>.<\/p>\n<p>[\/vc_message][vc_column_text css=&#8221;.vc_custom_1767698195631{margin-left: 200px !important;}&#8221;]When adding a credit balance to a client, this balance may automatically be used to pay invoices and may not, depending on whether the setting <strong>&#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong> is enabled or not.<\/p>\n<p>Here are the setting activation steps:<\/p>\n<p>From the dropdown of &#8220;<strong>Sales<\/strong>&#8221; in the main menu click on &#8220;<strong>Sales Settings<\/strong>&#8221; then select &#8220;<strong>Invoicing Settings<\/strong>&#8220;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43706 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/Untitled-3.png\" alt=\"\" width=\"1365\" height=\"631\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/Untitled-3.png 1365w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/Untitled-3-300x139.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/Untitled-3-1024x473.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/Untitled-3-768x355.png 768w\" sizes=\"auto, (max-width: 1365px) 100vw, 1365px\" \/><\/p>\n<p style=\"text-align: left;\">Click on<strong> &#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong> to activate it.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43920 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6.png\" alt=\"\" width=\"1365\" height=\"635\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6.png 1365w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6-300x140.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6-1024x476.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6-768x357.png 768w\" sizes=\"auto, (max-width: 1365px) 100vw, 1365px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Activating the Setting and Adding a Credit Note to the Invoice&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1729669976712{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;vista_blue&#8221; icon_fontawesome=&#8221;far fa-bell&#8221; css=&#8221;.vc_custom_1767698246476{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">Follow this scenario if the <strong>&#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong> setting is activated, and a credit note is added to the invoice with the intent of retaining it as a credit balance for the client, rather than using it to pay the invoice.<\/p>\n<p>This requires recording the payment for the client through a method other than the credit note, while keeping the credit balance in the client&#8217;s account.[\/vc_message][vc_column_text css=&#8221;.vc_custom_1767698325341{margin-left: 200px !important;}&#8221;]When you activate the setting <strong>&#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong>, then you add a credit note to one of the invoices, the invoice amount will be deducted form the added credit balance, then the invoice status will automatically be &#8220;<strong>Paid<\/strong>&#8220;.<\/p>\n<p>What if the client wants to keep the credit balance in their account and not use it to pay the invoice?<\/p>\n<p>In this case you&#8217;ll create a &#8220;<strong>Reverse Entry<\/strong>&#8221; so that the invoice statues changes to &#8220;<strong>Paid<\/strong>&#8221; and the credit balance remains in the client&#8217;s account.<\/p>\n<p style=\"text-align: left;\"><strong>Here are the steps:<\/strong><\/p>\n<p>Click on &#8220;<strong>Sales Settings<\/strong>&#8221; from the dropdown menu of &#8220;<strong>Sales<\/strong>&#8221; in the main menu, then select &#8220;<strong>Invoicing Settings<\/strong>&#8220;, and activate the setting <strong>&#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong>, then click on &#8220;<strong>Save<\/strong>&#8220;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43920 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6.png\" alt=\"\" width=\"1365\" height=\"635\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6.png 1365w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6-300x140.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6-1024x476.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-6-768x357.png 768w\" sizes=\"auto, (max-width: 1365px) 100vw, 1365px\" \/><\/p>\n<p style=\"text-align: left;\">Create a new invoice without adding payments to it, so that its status appears as &#8220;<strong>Unpaid<\/strong>&#8220;.<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/kojiu.png\"> <img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26281 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/uigjvfs.png\" alt=\"\" width=\"1366\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/uigjvfs.png 1366w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/uigjvfs-300x132.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/uigjvfs-1024x449.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/uigjvfs-768x337.png 768w\" sizes=\"auto, (max-width: 1366px) 100vw, 1366px\" \/><\/a><\/p>\n<p style=\"text-align: left;\">Issue a credit note on the same invoice as follows:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26283 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/grefsd.png\" alt=\"\" width=\"1199\" height=\"600\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/grefsd.png 1199w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/grefsd-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/grefsd-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/grefsd-768x384.png 768w\" sizes=\"auto, (max-width: 1199px) 100vw, 1199px\" \/><\/p>\n<p style=\"text-align: left;\">The invoice status has changed to &#8220;<strong>Paid<\/strong>&#8221; in the invoice file.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26285 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/azbgFS.png\" alt=\"\" width=\"1199\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/azbgFS.png 1199w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/azbgFS-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/azbgFS-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/azbgFS-768x384.png 768w\" sizes=\"auto, (max-width: 1199px) 100vw, 1199px\" \/><\/p>\n<p style=\"text-align: left;\">It also appears in the invoice reports with the status &#8220;<strong>Paid<\/strong>.&#8221;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26290 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/sdfrhgzdf.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/sdfrhgzdf.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/sdfrhgzdf-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/sdfrhgzdf-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/sdfrhgzdf-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p style=\"text-align: left;\">If you wish to retain the customer&#8217;s credit balance, the payment should be recorded through an alternative method, as you will not be able to add a payment in the usual way to a previously paid invoice (via a credit note). You will receive an error message: &#8220;This invoice has been paid before&#8221; when attempting to add the payment.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26297 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/zghbsfdz.png\" alt=\"\" width=\"1198\" height=\"563\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/zghbsfdz.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/zghbsfdz-300x141.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/zghbsfdz-1024x481.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/zghbsfdz-768x361.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p>Therefore, we resort to adding a reversing journal entry for the entry resulting from the creation of the invoice, so that this reversing entry will restore the credit balance to the client&#8217;s account.<\/p>\n<p>Click on the desired invoice, then click on the journal entry number at the top of the invoice details.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26300 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/GSFDzx.png\" alt=\"\" width=\"1198\" height=\"600\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/GSFDzx.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/GSFDzx-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/GSFDzx-1024x513.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/GSFDzx-768x385.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p>Then click on &#8220;<strong>Clone<\/strong>&#8221; and select &#8220;<strong>Reverse Journal Entry<\/strong>&#8221; from the dropdown menu.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26306 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/szrhedg.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/szrhedg.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/szrhedg-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/szrhedg-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/szrhedg-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p style=\"text-align: left;\">The details of the reversing entry will appear automatically, and all you need to do is click the &#8220;<strong>Save<\/strong>&#8221; button.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26309 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/hhfvzsk.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/hhfvzsk.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/hhfvzsk-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/hhfvzsk-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/hhfvzsk-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p style=\"text-align: left;\">The credit balance will then appear in the client&#8217;s file as desired, as shown below.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26312 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/csdds.png\" alt=\"\" width=\"1366\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/csdds.png 1366w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/csdds-300x132.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/csdds-1024x449.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/csdds-768x337.png 768w\" sizes=\"auto, (max-width: 1366px) 100vw, 1366px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Not activating the setting and adding a credit note to the invoice&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1735649574949{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;vista_blue&#8221; icon_fontawesome=&#8221;far fa-bell&#8221; css=&#8221;.vc_custom_1767698557612{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">This scenario is followed when the setting <strong>&#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong> is not activated, and a credit note is mistakenly added instead of the payment transaction intended to pay the invoice.<\/p>\n<p style=\"text-align: left;\">As a result, the invoice will not change to the &#8220;<strong>Paid<\/strong>&#8221; status in the invoice file or in the invoice reports. To correct this, you need to add the payment transaction in the usual way and then issue a reversing entry for the payment entry to avoid the invoice being marked as paid twice: once through the credit note and once through the payment transaction.<\/p>\n<p>[\/vc_message][vc_column_text css=&#8221;.vc_custom_1767698528233{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">If the setting<strong> &#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong> is not activated, and a credit note is added to one of the invoices to pay the client&#8217;s invoice, the customer&#8217;s credit balance remains unchanged. The invoice is not paid through it. To change the invoice status to &#8220;<strong>Paid<\/strong>,&#8221; you must add the payment transaction, then issue a reversing entry for the payment transaction to cancel out the possibility of the invoice being paid twice: once via the payment transaction and once via the credit note. Here are the detailed steps to implement this:<\/p>\n<p style=\"text-align: left;\">Click on &#8220;<strong>Sales Settings<\/strong>&#8221; from the &#8220;<strong>Sales<\/strong>&#8221; dropdown in the main menu, then click on &#8220;<strong>Invoicing Settings.<\/strong>&#8221;<br \/>\nEnsure that the setting <strong>&#8220;Auto-Pay Invoices Using Client Credit&#8221;<\/strong> is not activated. Then, click the &#8220;<strong>Save<\/strong>&#8221; button.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43923 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-7.png\" alt=\"\" width=\"1365\" height=\"628\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-7.png 1365w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-7-300x138.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-7-1024x471.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/Untitled-7-768x353.png 768w\" sizes=\"auto, (max-width: 1365px) 100vw, 1365px\" \/><\/p>\n<p style=\"text-align: left;\">Issue a new invoice without adding a payment transaction, and it will appear with the status &#8220;<strong>Unpaid<\/strong>.&#8221;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26325 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/aihkfjLSCA.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/aihkfjLSCA.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/aihkfjLSCA-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/aihkfjLSCA-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/aihkfjLSCA-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p>Then, issue a credit note for the invoice as follows:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26327 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dzfsaz.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dzfsaz.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dzfsaz-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dzfsaz-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dzfsaz-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p style=\"text-align: left;\">To find that the invoice status is still unpaid, so click on &#8216;<strong>Add Payment<\/strong>&#8216;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26329 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/vsFAD.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/vsFAD.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/vsFAD-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/vsFAD-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/vsFAD-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p>Enter the payment transaction details, then click on &#8220;<strong>Add Payment<\/strong>.&#8221; The invoice status will then change to &#8220;<strong>Paid<\/strong>&#8221; in both the invoice file and the invoice reports.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26331 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/fkslc.png\" alt=\"\" width=\"1199\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/fkslc.png 1199w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/fkslc-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/fkslc-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/fkslc-768x384.png 768w\" sizes=\"auto, (max-width: 1199px) 100vw, 1199px\" \/><\/p>\n<p style=\"text-align: left;\">Then, click on the payment transaction and click on the journal entry number associated with the transaction.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26333 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/lvdscz.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/lvdscz.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/lvdscz-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/lvdscz-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/lvdscz-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p>Click on &#8220;<strong>Clone<\/strong>&#8221; then &#8220;<strong>Reverse Journal Entry<\/strong>&#8220;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26335 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/yiuop.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/yiuop.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/yiuop-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/yiuop-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/yiuop-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/><\/p>\n<p style=\"text-align: left;\">The details of the reversing entry will appear automatically. All you need to do is click the &#8220;<strong>Save<\/strong>&#8221; button.<\/p>\n<p style=\"text-align: left;\">You will find that the client&#8217;s account is settled after issuing the reversing entry for the payment transaction, so there will be no credit balance or open balance requiring payment.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-26338 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dhgkjfslzd.png\" alt=\"\" width=\"1198\" height=\"599\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dhgkjfslzd.png 1198w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dhgkjfslzd-300x150.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dhgkjfslzd-1024x512.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/10\/dhgkjfslzd-768x384.png 768w\" sizes=\"auto, (max-width: 1198px) 100vw, 1198px\" \/>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":13,"template":"","categories":[2149,2036,2155,2101,2153,2150,2093,2102],"tags":[7156,7157,7158],"class_list":{"0":"post-23129","1":"user_manual","2":"type-user_manual","3":"status-publish","4":"hentry","5":"category-invoices-and-estimates","6":"category-sales","7":"category-sales-invoice","8":"category-sales-reports","9":"category-refund-receipts-credit-notes","10":"category-sales-settings","11":"category-reports","12":"category-invoices-periodic-reports","13":"tag-------en","15":"tag--------en"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Display Invoice Report with the Correct Status when a Credit Note is Added to the Invoice - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/display-invoice-report-with-the-correct-status-when-a-credit-note-is-added-to-the-invoice\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Display Invoice Report with the Correct Status when a Credit Note is Added to the Invoice - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1729666839886{margin-left: 200px !important;}&#8221;]Credit notes are documents that prove the seller added a credit balance to the client&#8217;s account as a refund or to correct a transaction error. 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