How do I raise a credit note?

You need to enable first the Automatically apply credits feature in QuickBooks Online (QBO) to issue a credit note, Jane.

Here's how to turn it on:

1. Log in to your QuickBooks Online (QBO) account.
2. Go to Settings  and select Account and settings.
3. Select the Advanced tab.
4. Select Edit ✎ in the Automation section.
5. Turn on Automatically apply credits if you want to automatically apply credits to customer balances or open invoices.
6. Select Save, then Done.

Please see the screenshot for reference:

Next, you can now create a credit note. Let me show you how:

1. Select + New.
2. Select Credit note.
3. From the Customer dropdown, select the customer's name.
4. Enter the credit note details, such as the date and the amount.
5. Tip: You can create a custom credit service item so you can quickly add it to credit notes as a single line item.
6. When you're done, select Save and Close.
   
   

If you are ready to apply the credit note to an invoice, you can visit this article and please follow the step 3 procedure: Create and apply credit notes or delayed credits in QuickBooks Online.

For future reference, I've added this resource about handling your sales transactions in QBO: Customise reports in QuickBooks Online.

Please add your reply below if you need further assistance regarding your credit note.