Create credit notes automatically for refunds

Use this guide if you refund orders regularly and want every refund backed by a credit note without making each one yourself. By the end, each refund you issue in Shopify creates a credit note in Invoice Falcon, and, if you choose, emails it to the customer.

Before you begin

• Automatic credit notes need the Pro plan.
• Only refunds issued after you turn this on create a credit note. Earlier refunds aren’t covered. Make credit notes for those yourself. See Create credit notes.
• Each order gets one credit note. A second refund on the same order doesn’t create another one, and an order that already has a credit note you made yourself gets no new one.
• A refund that only restocks items, with no money returned, doesn’t create a credit note.

What customers will see

If you turn on Email the credit note to the customer, the customer gets an email from your store with the credit note attached as a PDF. The default subject is “{{shop_name}} - Credit Note {{order_number}}”. To change the text, see Customize your invoice emails.

If you leave emailing off, customers see nothing. The credit note is still created and saved, ready for you to print, download, or send later.

The credit note uses the template set as the default for credit notes. See Rename a template and set a default.

Set it up

1. Open your Shopify admin and click Invoice Falcon in the left menu.
2. Click Settings in the app’s menu. The Emails tab opens.
3. In the Credit notes section, click Customize. The Credit note emails editor opens.
4. In the editor’s sidebar, under Sending, click Automatic credit notes.
5. Next to Create credit notes automatically, click Turn on.
6. Optional: under Customer email, tick Email the credit note to the customer.
7. Click Save in the bar at the top of the page.

Back on the Emails tab, the Credit notes section shows On, and says whether the credit note is also emailed to the customer.

If the order doesn’t have an invoice yet when you refund it, Invoice Falcon creates the invoice first, then the credit note.

Check your setup

1. In Shopify, refund an amount on a test order that uses your own email address.
2. Wait a minute or two.
3. In Invoice Falcon, click Orders in the app’s menu, then click the Credit notes tab. The new credit note is listed with its Original invoice #.
4. If you turned on emailing, check your inbox for the credit note email.

Troubleshooting

I refunded an order but no credit note was created

Check these in order:

1. Create credit notes automatically shows On in Settings > Emails.
2. The refund returned money. Restock-only refunds don’t create a credit note.
3. The order doesn’t already have a credit note. Look for it on the Credit notes tab.
4. The refund was issued after you turned the setting on.

I refunded the same order twice and there's only one credit note

That’s expected. Each order has one credit note. The second refund doesn’t create another one. Open the existing credit note from the Credit notes tab to review it.

The credit note was created but the customer didn't get it

Check that Email the credit note to the customer is ticked, and that the order has a customer email address. To send it now, open the credit note from the Credit notes tab and click Send > Send email.

I can't turn on Create credit notes automatically

It needs the Pro plan. Click the lock next to the setting to see upgrade options. See Invoice Falcon pricing and plans.

FAQ

Does this create credit notes for refunds I've already made?

No. Only refunds issued after you turn it on create a credit note. For earlier refunds, open the order in Invoice Falcon and click Other > Create credit note.

Does the order need an invoice before I refund it?

No. If the order has no invoice yet, Invoice Falcon creates it first, then makes the credit note from it.

Do my sending rules for invoices apply to credit notes?

No. Only send when and Tags under Automatic invoices only decide which invoices are sent. Every money refund creates a credit note.

Can I still make credit notes myself?

Yes. Open the order’s page and click Other > Create credit note. See Create credit notes.

What happens if I move to the Free plan?

Automatic credit notes switch off. Credit notes already created stay on the Credit notes tab, and you can still make new ones yourself.

Related guides

• Create credit notes, to make one yourself.
• Customize your invoice emails, to change the credit note email.
• Rename a template and set a default, to choose the credit note template.
• Keep issued invoices unchanged, if refunds must not change the original invoice.