When to issue a Credit, Debit, or Refund Note
4 min read · All users
Once a sales invoice is past the 72-hour cancellation window and becomes locked, you can no longer cancel it. Instead, you issue an adjustment note — a Credit Note (CN), Debit Note (DN), or Refund Note (RN) — against the original invoice. Each serves a different purpose.
| Note type | Use when | Effect on original invoice |
|---|---|---|
| Credit Note (CN) | You need to reduce the invoice amount — wrong price, overcharge, returned goods, or full cancellation after 72 hours | Reduces the taxable amount. Effectively negates if issued for the full amount. |
| Debit Note (DN) | You need to increase the invoice amount — undercharge, additional charges not in the original | Increases the taxable amount. |
| Refund Note (RN) | You are refunding money to the customer — not an invoice correction, but an actual payment reversal | Records the refund for tax purposes. |
CN, DN, and RN are submitted to LHDN just like regular invoices — they go through the same validation flow and receive their own UUID and QR code once valid.
The 72-hour rule recap
- Within 72 hours of Valid — cancel the invoice directly. No CN/DN needed.
- After 72 hours — issue a Credit Note to reduce or negate, or a Debit Note to increase.
- Refunding a payment — issue a Refund Note regardless of timing.
How to create CN/DN/RN in JomeInvoice
Open the original invoice, click Issue Credit / Debit / Refund Note from the action menu, and select the note type. The note is pre-linked to the original invoice — LHDN records the relationship between the two documents automatically.