Credit Note status, balance, and Invoice allocation
An **Open** credit note has unused credit or is not yet closed. **Closed** means the full amount has been used. **Invalid** is retained for historical purposes but must not be used for new allocations.
On the card, select Actions → Allocate Invoice. Select the customer Invoice and enter the amount to be applied. It cannot exceed the credit balance or the outstanding amount of Invoices. Applying a portion reduces the balance; using the full amount may result in the document status becoming Closed.
If you need to remove an allocation, first reconcile the accounting records. Removal will increase the credit balance and restore the corresponding debt and status of Invoices.
Credit Note, its allocation, and the refund to the customer are separate actions. Record the bank refund according to your organization's accounting procedures.