# Credit notes - Folioline 1.x documentation

> How refunds become credit notes, issuing one by hand, and correcting an invoice with a credit note.

A credit note is the document that takes back all or part of an invoice. Folioline issues one for each refund of an invoiced order, with its own number series (`CN-2026-00001` to start with), naming the invoice it credits.

## A credit note for every refund

Refund an order the usual way: on the order screen, click **Refund**, enter the items or amount and a reason, and click **Refund … via** your payment method or **Refund … manually**. Once the refund is saved, Folioline issues its credit note:

- an order note says "Credit note CN-2026-00001 issued.";
- the **Documents** box lists it under the invoice;
- it goes with the Refunded order email, for full and partial refunds (see **Attach credit notes to** in [Settings](settings)).

Each refund gets its own credit note, so two partial refunds make two credit notes. The credit note shows the refunded items, shipping and fees with their VAT rates. A refund of an amount without items is spread over the invoice's VAT rates in proportion, so the VAT on the credit note matches the invoice. The refund reason is printed on it.

A credit note names the same customer as its invoice: the billing and shipping address, VAT number and reverse charge are copied from the invoice, even if you changed the order after the invoice was issued.

Amounts on a credit note are positive: it's a credit note, not a negative invoice. In the [registers](reports) they count as negative, so totals add up.

## When there's no credit note

- **The refund has no money back**, such as a refund of 0 for an exchange. There's nothing to credit.
- **The order has no invoice yet.** When it gets one, Folioline issues the credit notes for its earlier refunds straight after.
- **Credit notes** is off under **WooCommerce → Folioline → Documents**. Issue them by hand instead.
- **The order was cancelled, not refunded.** Cancelling an invoiced order doesn't issue a credit note. Refund it (a manual refund is fine if no money changed hands) and the credit note follows.

## Issue a credit note by hand

When an invoiced order has a refund without a credit note, the **Documents** box shows a button for it: **Issue credit note for the refund of €20.00**. Click it.

## Correct an invoice

Issued invoices can't be edited. To correct one, for example a wrong address or price:

1. Refund the order in full, or the part that was wrong, with a reason such as "Invoice correction". Use **Refund manually** when no money should move.
2. Folioline issues the credit note that cancels the old invoice, or the wrong part of it.
3. If the customer needs a new invoice with the right details, create a new order for them (**WooCommerce → Orders → Add order**), and issue its invoice.

> [!NOTE]
> How corrections must be made depends on your country's rules. Folioline isn't tax advice: check with your accountant when in doubt.

## Returns

With Returnline, a return's page shows the credit notes of the refunds it made. See [Working with other plugins](working-with-other-plugins).

Source: https://extendiment.com/plugins/folioline/docs/1.x/credit-notes