Invoice Adjustments

Invoice adjustments let you modify an invoice's balance without editing the original line items. Use adjustments for credits, discounts, late fees, write-offs, and interest charges.

When to Use Adjustments

Adjustments are better than editing line items when:

• The original invoice was correct, but circumstances changed
• You need to maintain an audit trail of changes
• The invoice has already been sent to the customer
• Accounting needs to track adjustments separately

Adjustment Types

Type	Effect	Common Uses
Credit	Reduces balance	Goodwill credit, price adjustment, returned product
Discount	Reduces balance	Loyalty discount, settlement discount, promotional pricing
Write-off	Reduces balance	Uncollectable debt, small balance clearance
Late Fee	Increases balance	Overdue payment penalty
Interest	Increases balance	Ongoing interest on overdue balance
Other	Either direction	Miscellaneous adjustments

Adding an Adjustment

1. Open the invoice you want to adjust
2. Click More → Add Adjustment
3. Select the adjustment type
4. Enter the amount
5. Add a description (visible to customer)
6. Optionally add an internal note (staff only)
7. Click Save

The invoice total updates immediately.

Click to enlarge

The add adjustment modal allows you to apply credits, discounts, late fees, or other adjustments to an invoice while maintaining a complete audit trail

Amount Rules

Adjustments automatically enforce the correct sign:

• Credits, discounts, write-offs — Amount must be negative (reduces balance)
• Late fees, interest — Amount must be positive (increases balance)
• Other — You choose the sign

Amount Limits

Credits and discounts cannot exceed the remaining balance. If an invoice has $100 remaining, you cannot add a -$150 credit.

Which Invoices Can Be Adjusted

Adjustments can only be added to invoices with these statuses:

Status	Can Adjust?
Draft	No — edit line items instead
Sent	Yes
Viewed	Yes (treated as Sent)
Overdue	Yes
Partially Paid	Yes
Paid	No — balance is already zero
Void	No — invoice is cancelled

Viewing Adjustments

Adjustments appear on the invoice in the Adjustments section:

• Description — What you entered (customer sees this)
• Amount — The adjustment value
• Date — Effective date of adjustment
• Added by — Staff member who created it

In Activity Log, you can see the full history including internal notes.

Deleting Adjustments

You can delete an adjustment only if:

• No payments have been received on the invoice
• You have admin or owner permissions

After any payment is received, adjustments are locked to maintain accounting integrity. If you need to undo an adjustment on a partially paid invoice, add a reverse adjustment instead.

To Delete

1. Open the invoice
2. Find the adjustment in the Adjustments section
3. Click the Delete icon
4. Confirm deletion

The invoice balance recalculates automatically.

Write-offs

Use write-offs to clear small or uncollectable balances:

1. Add an adjustment with type Write-off
2. Set amount to the negative of the remaining balance
3. Add description like "Written off - uncollectable"
4. Add internal note with reason (for your records)

When a write-off clears the entire balance, the invoice status changes to Paid.

Late Fees

To add a late fee:

1. Open the overdue invoice
2. Add adjustment with type Late Fee
3. Enter the fee amount (positive number)
4. Add description like "Late payment fee - 30 days overdue"

Accounting Integration

When synced to Xero or your accounting system:

• Credits/discounts appear as separate line items or credit notes
• Late fees/interest appear as additional charges
• Write-offs may sync to a bad debt expense account

Check your Xero integration settings to configure how adjustments are handled.

Customer Visibility

What Customer Sees	What Customer Doesn't See
Adjustment description	Internal notes
Amount	Who added it
Effective date	Timestamps

Keep descriptions professional — customers see them on invoices and payment pages.

Common Workflows

Settling for Less

Customer offers to pay $900 on a $1,000 invoice:

1. Add Discount adjustment: -$100
2. Description: "Settlement discount"
3. Accept the $900 payment

Small Balance Clearance

Invoice has $0.23 remaining due to rounding:

1. Add Write-off adjustment: -$0.23
2. Description: "Balance cleared"
3. Invoice marks as Paid

Adding Overdue Penalty

Invoice is 60 days overdue:

1. Add Late Fee adjustment: $50
2. Description: "Late payment fee - 60 days"
3. New balance includes the fee

Permissions

Role	Add Adjustment	Delete Adjustment	View
Owner	Yes	Yes	Yes
Admin	Yes	Yes	Yes
Office	Yes	No	Yes
Field	No	No	No