A credit invoice or credit note is a statement detailing a refund or credit to an invoice. If you create an invoice and send it out to the tenant it needs to be marked in your bookkeeping. Invoices that have been sent out, can’t just be deleted. This is when you need to issue a credit invoice- to void or partially refund an existing invoice.

You may need to create a credit invoice when for example your tenant ordered an extra service (e.g. parking), you issued an invoice for the whole month but they decide to cancel the service before the month is up. Also for example when you usually collect interest on overdue invoices but have a special agreement with a tenant to not to collect them temporarily, so you’ve automatically issued an invoice for them with the interest, they’ve paid the invoice but not the interest. Now you need to issue a credit invoice for the interest amount to even out the balance for your bookkeeping.