How to enable Void invoice with credit note setting?

Problem Statement

As per Nordic and some EU regulations (such as Germany and France), every voided invoice must be accompanied by a credit note (also called a cancellation invoice). This ensures the original invoice is marked as canceled by a corresponding negative entry.

Solution

You can enable the Void invoice with credit note setting in Chargebee to automatically generate a credit note whenever an invoice is voided. This ensures compliance with regional invoicing laws.

Steps to enable Void invoice with credit note

1. In the left navigation menu, go to Settings > Configure Chargebee.
2. Under Billing LogIQ, select Void invoice with credit note.
3. Enable the Void invoice with credit note option.
4. Click Apply to save your changes.

When this setting is enabled, a credit note is automatically created each time an invoice is voided.

Additional Information

• You cannot remove or delete the system-generated credit note associated with a voided invoice.
• You cannot delete the voided invoice itself from the system.
• If you have enabled this setting, invoices are voided with a credit note at the end of the dunning period.
• If the setting is disabled, invoices are voided without a credit note attached.