My Business Path
Money and bookkeepingTax & records

How should refunds and credit notes be recorded?

We sometimes refund part of an invoice and the bookkeeping becomes unclear.

Source and scope: My Business Path prepared and reviewed this general guidance as a practical starting point. It is not advice tailored to your circumstances. Check the linked official source before acting. GOV.UK: Invoicing
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My Business Path starting point

Link the credit note or refund to the original sale, preserve the audit trail and reconcile the money movement. Do not edit an issued invoice so the history disappears.

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How should refunds and credit notes be recorded? | My Business Path