Cancel an invoice, credit it, or refund it
Putting something right after the customer already has the invoice — properly.
Written 30 September 2026
What is said in this recording
Once an invoice has gone out, the customer may be holding a copy — so its total never moves. What changes is what is still owed, carried by a credit note against it. That is the honest way to do it, and it is what your accountant and HMRC expect.
Step by step
- 1
Open the invoice and press Cancel this invoice.
- 2
Say why.
It goes on the credit note and into the audit trail.
- 3
Decide what happens to any money already paid.
Refund it, hold it as account credit for next time, or a mix of the two. You can refund part of it.
- 4
Confirm.
A credit note is raised, the invoice total stays exactly as the customer has it, and what is due becomes the total less what has been credited.
- 5
Any credit held shows on the customer's record.
It is offered automatically against their next quote.
Worth knowing
The invoice total never changes
Editing the figure on an issued invoice would mean your copy and the customer's copy disagree. A credit note keeps both true and leaves a trail of what happened and why.
A refund is its own record, not a status
It is stored as a separate negative payment rather than as a flag on the original. That is the only way a PART refund can be recorded honestly, and it means a refund raised here and one that comes back from the card provider can never be counted twice.
It reaches your accounting package
Credit notes and refunds push through to Xero, QuickBooks and Sage along with everything else. Sage's refund handling is the least proven of the three — worth checking the first one lands as you expect.