> This page is for version v2024-05-25 (default).
> For other versions, use one of these documentation indexes:
> - v2024-05-25 (default): https://docs.monite.com/v-2024-05-25/llms.txt
> - v2024-01-31: https://docs.monite.com/v2024-01-31/llms.txt
> - v2023-09-01: https://docs.monite.com/v2023-09-01/llms.txt

> For clean Markdown of any page, append .md to the page URL.
> For a complete documentation index, see https://docs.monite.com/llms.txt.
> For AI client integration (Claude Code, Cursor, etc.), connect to the MCP server at https://docs.monite.com/_mcp/server.

# Credit notes (accounts payable)

> **Info**
>
> This guide covers credit notes in accounts payable. Monite also supports [credit notes for accounts receivable](/accounts-receivable/credit-notes).

## Overview

A credit note is a legal document used to reduce the amount owed on a payable after it was issued. Entities would typically use credit notes in the following cases:

* An issued payable contains a mistake (for example, wrong product or quantity).
* The order needs to be changed after the payable has been issued.
* The order was canceled by the entity or the customer (counterpart).

Credit notes can be used to partially reduce the payable amount as well as fully cancel a payable.

Multiple credit notes can be issued for the same payable. However, the total amount credited cannot exceed the payable amount.

## Roles and permissions

To create and manage credit notes using an [entity user token](../../entities/users#get-entity-user-token), this entity user must have a role with the `payables` [permission](/api/concepts/authentication#permissions).

If a [partner-level token](../../get-started/credentials#generate-partner-token) is used, no special permissions are needed.

## Use cases

Monite API supports the following use cases for credit notes:

* **Reduce quantities of line items.**\
  Example: a payable was issued for 10 laptops, but only 8 were actually delivered. A credit note can "cancel" the remaining 2 laptops that were not delivered.
* **Reduce the price of some or all units within a line item.** (Essentially applying a discount.)\
  Example: A product was mistakenly billed as € 210 instead of € 200. A credit note can correct the price back to € 200.
* **Credit the full remaining amount of a payable.** This cancels an unpaid payable, or marks a partially paid payable as paid.

## Considerations and limitations

* Credit notes can be created only for payables in the `waiting_to_be_paid`, `partially_paid`, and `paid` [statuses](../payables/index#statuses).
* Credit notes for partially paid payables can be used to reduce only the quantity of line items, but not the unit prices.
* If a credit note cancels the full remaining amount of a payable in the `waiting_to_be_paid` or `partially_paid` statuses, the payable is automatically moved to the `paid` status.
* Changing line item VAT rates via credit notes is not supported.
* If a payable includes several line items for the same product, credit notes cannot be used to update those specific line items. However, other line items on the payable can be updated.
* If a counterpart's address or contact information was changed after a payable was issued, you can provide the updated counterpart address or contact information via a credit note. However, the updated information will only appear in the credit note; the information in the original payable is not changed.