Invoicing explained
Credit note vs Refund
A credit note reduces what a customer owes and can be applied to a future invoice; a refund returns money the customer already paid. A credit note adjusts the books; a refund moves cash back.
What is credit note?
A credit note is a document that lowers the amount owed — used to correct an overcharge, a return, or an agreed discount. The credit can offset a future invoice instead of moving any money.
What is refund?
A refund is an actual return of funds the customer already paid. It's used when there's no future invoice to offset or when the customer wants their money back.
Credit note vs Refund: the key differences
Here's how credit note and refund differ at a glance:
- Money movement — a refund returns cash; a credit note usually doesn't.
- Use — credit note offsets future invoices; refund repays past payment.
- Records — both keep your books accurate without editing the original invoice.
How this works in Invco
No. Invco doesn't issue credit notes and doesn't move money, so refunds happen through your bank or payment provider. Invco keeps your invoices and their status, and can export everything to CSV for your accountant.
Invco is invoicing software for people who run more than one company. Design your own invoice template or upload your existing invoice PDF, add line items with per-line tax and discounts, and Invco calculates the totals, numbers each invoice sequentially and emails it as a branded PDF from your own address. Every invoice is tracked from draft to sent to paid, and overdue ones are flagged automatically. Plans from $10/month.
More invoicing comparisons
- Invoice vs EstimateAn estimate is a non-binding projection of what a job will cost, sent before the work.
- Invoice vs ReceiptAn invoice requests payment for goods or services; a receipt confirms that payment has been made.
- Invoice vs QuoteA quote is a fixed price offered before the work; an invoice is the bill sent after it.
- Net 30 vs Due on ReceiptNet 30 gives the client 30 days to pay from the invoice date; due on receipt asks for payment immediately.
Frequently asked questions
What is the difference between credit note and refund?
A credit note reduces what a customer owes and can be applied to a future invoice; a refund returns money the customer already paid. A credit note adjusts the books; a refund moves cash back.
Does Invco create credit notes or process refunds?
No. Invco doesn't issue credit notes and doesn't move money, so refunds happen through your bank or payment provider. Invco keeps your invoices and their status, and can export everything to CSV for your accountant.
How much does Invco cost?
Starter is $10/month for 1 company, Growth is $20/month for up to 3 companies, Pro is $30/month for up to 8 companies, Scale is $50/month for up to 20 companies, and Unlimited is $100/month with no cap. Every plan includes every feature, with no per-invoice fees, and you get a full refund if you cancel within 7 days of a charge.
Invoice the easy way with Invco
Design your invoice template, send branded PDFs from your own email address, and see what's paid and overdue for every company. Plans from $10/month, with a full refund within 7 days.
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