Note: Credit Notes is an early access feature during pilot. See "How to enable Credit Notes in tofu?" below to turn it on for your organization and entities.
AP Credit Note: a credit note a supplier issues to you, reducing a bill you owe. AR Credit Note: a credit note you issue to a customer, reducing an invoice they owe you.
How to enable Credit Notes in tofu
Step 1: Your organization owner turns on Credit Notes under Organization Settings → Features.
Note: Turning this on shows a confirmation popup, since Credit Notes is an early feature, it may change without notice, data loss is possible, and bugs are expected. Support isn't guaranteed for issues that come up. Your organization owner will need to accept this before the feature turns on.
Step 2: The organization owner or an admin goes to Entity Settings → Features for each entity, then enables:
AP Credit Notes
AR Credit Notes
Or both
💡Tip: You can also configure Auto Ready, Auto Publish, and Auto Done from the same tab.
How to Upload and Publish
Go to the Source Documents panel and click Upload Document.
Select AP Credit Note or AR Credit Note as the extraction type.
Select the credit note file(s) to upload.
Review the extraction, including:
Reason Code & Reason Description
Original Invoice Number
Click Mark Ready.
From Ready, click Publish to send it to your connected accounting software (Xero, QuickBooks Online, freee, Sage, or Zoho Books).
You can also send credit notes in automatically through Email, SharePoint, Google Drive, or WhatsApp.
💡 Tips
Review credit notes like AP Bills and AR Invoices using your usual filters, bulk actions, and keyboard shortcuts.
If publishing is blocked, check the message tofu displays. It will indicate what's missing.
Supported Accounting Software
Xero: AP & AR Credit Notes
QuickBooks Online: AP & AR Credit Notes
freee: AP & AR Credit Notes
Sage: AP & AR Credit Notes
Zoho Books: AP & AR Credit Notes
💡 Platform-specific notes:
Xero: AR credit note numbers are unique/auto-generated; AP numbers are free text. The Credit Note Number must be unique, even a voided credit note in Xero keeps its number, so it can't be reused. Discounts aren't supported on credit notes. Before publishing, set the Credit Note status on publish (Draft, Awaiting Approval, or Awaiting Payment) separately for AP and AR Credit Notes in your Xero integration settings.
QuickBooks Online: Every AR credit note line must have a Product or Service item before publishing.
freee: Credit notes publish as a reversed-type entry using the original account, so totals and tax treatment may look different from a typical deal. Reach out to support if a published amount looks off.
Sage: Some actions (editing after publish, voiding, attachments) depend on your Sage plan tier and region. If an action isn't available, tofu will show why.
Zoho Books: Every AR credit note line needs an Item, same as AR Invoices. For the Original Invoice Number field, enter the Invoice Number from Zoho. The original AR invoice also needs to be in Sent or Paid status in Zoho, not Draft, before you can publish the credit note against it.