# Credit notes

A credit note voids or reduces part or all of a standard invoice after it has been issued.

Credit notes are not used for commercial discounts. Discounts are applied in the booking journey
before billing.

## Flow

Issued, then applied to invoice. The invoice balance goes down.

## When they appear

- Voiding an issued invoice (full or partial)
- Billing corrections after issue
- Regulatory or operational adjustments that require a credit document

Credits are created automatically when the business action happens in Lavanda.

## Credit note vs credit charge note

- **Credit note** — Applies to a standard invoice.
- **Credit charge note** — Applies to a charge note. Workspaces on charge notes use credit charge
  notes, not standard credit notes.

## Link to invoices

Each credit note is tied to the invoice it affects. Allocations show how much was applied. Use
balance and allocation links to determine credited state — see [Allocations](/finance-and-accounting/allocations/).