Understand credit notes and allocations

In short

A credit note reduces a receivable when an allocation links it to an invoice on the same customer account. Its available amount accounts for refunds and allocations already used. The credit note moves from **Issued** to **Partially settled**, then **Settled** when nothing remains. The invoice balance decreases in parallel and can become paid without another bank payment.

Expected result

Each allocation links the correct credit note and invoice, reducing both remaining amounts equally.

Before you start

• Confirm invoice and credit note belong to the same account.
• Locate available credit and remaining invoice amount.

Procedure

1. Open the credit note and check issued, refunded, allocated, and remaining amounts.
2. Choose the invoice on the same account that should receive the credit.
3. Enter a positive amount within both available limits.
4. Submit and verify the allocation on both credit note and invoice.
5. Review resulting statuses and the collection account balance.

What Billabex does

Allocation is coordinated across both aggregates so invoice and credit note contain the same link. Removing it restores remaining amounts and can reactivate a receivable previously covered.

If the result is not what you expected

• Allocation across different accounts is rejected.
• A refunded or consumed credit note cannot be fully reused.
• When a synchronized document changes, wait for orphan-allocation cleanup before retrying.