How to Create Credit Notes in Magic Heidi

As a freelancer, things don't always go according to plan. A package arrives damaged. A client changes the scope of a project mid-way. You accidentally overbill someone. Whatever the reason, there are times when you need to issue a refund — either partially or in full.

In traditional accounting software, credit notes often involve creating separate document types, navigating complex workflows, and wrestling with confusing reconciliation processes. Magic Heidi takes a different approach. Designed around the Swiss Milchbüechli (milk book) accounting principle, Magic Heidi keeps things refreshingly simple so you can handle refunds without an accounting degree.

In this guide, you'll learn two straightforward methods for creating credit notes in Magic Heidi:

• Method 1: Adding a credit note section directly to an existing invoice (ideal for partial refunds)
• Method 2: Creating a standalone refund invoice (best for full refunds after payment)

When to Use This Method

• A client hasn't paid yet and you need to adjust the invoice amount
• You're issuing a partial refund on a multi-item invoice
• You want to keep everything in a single, clean document

Step-by-Step Instructions

1. Open the invoice you want to edit. Navigate to your invoices in Magic Heidi and select the one that needs a credit note adjustment.
2. Add a new section header for the credit note. Create a new article line and type "Credit Notes" (or similar) as the description. Set both the price and units to zero. This effectively creates a section divider — it won't affect the total, but it clearly labels what follows as a credit adjustment.
3. Add visual separation (optional but recommended). Insert an empty space element between your original invoice items and the new credit note section. This creates a clear visual break on the generated PDF.
4. Add the credit note line item. Create a new article line below your "Credit Notes" header. In the description, clearly explain the reason for the refund — for example, "Refund – broken package on delivery." Set the price to a negative value (e.g., -50).
5. Generate the updated invoice. Magic Heidi will produce a clean PDF showing the original line items, the credit note section, and the updated total.
6. Send the updated invoice to your client. Your client will see a single, clear document showing exactly what they're being charged, what's been refunded, and the new total.

Example — Method 1

Let's say you invoiced a client for CHF 90 — two items at CHF 45 each. One item arrived damaged:

Your client now sees a total of CHF 40 and knows exactly why the amount changed. Clean, transparent, and professional.

Tip: Always include a clear, specific reason for the credit note in the description field. This helps your client understand the adjustment and keeps your own records organized for tax purposes.

Example — Method 2

Your accounting now accurately shows that you received CHF 100 and refunded CHF 100, for a net of zero on that transaction.

Tip: If instead of refunding cash you plan to apply the credit to a future invoice, make a note of it in the refund invoice description. For example: "Credit to be applied to next invoice." This helps you remember the arrangement and gives your client a clear paper trail.

Which Method Should You Choose?

In most day-to-day freelancing situations, Method 1 will be your go-to. It's faster, keeps everything in one document, and is the simplest approach for both you and your client.