> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tesouro.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit notes (accounts payable)

> Learn how to amend payables amounts by using credit notes.

<Info>
  This guide covers credit notes in accounts payable. Tesouro also supports [credit notes for
  accounts receivable](/finops/guides/accounts-receivable/credit-notes).
</Info>

## Overview

A credit note is a legal document used to reduce the amount owed on a payable after it was issued. Organizations 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 organization 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 [organization user token](/finops/guides/organizations/users#get-organization-user-token), this organization user must have a role with the `payables` [permission](/finops/api/concepts/permissions).

If a [partner-level token](/finops/guides/authentication/client-credentials) is used, no special permissions are needed.

## Use cases

Tesouro 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](/finops/guides/accounts-payable/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 tax 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.