Xero users will soon notice a fresh new look when creating and managing credit notes, as this part of the software is being modernised, and the old version of Xero credit notes is being retired on the 13^th July 2026.

What’s changing?

Available now, the updated credit note screen has been redesigned to reflect the recently revised invoicing and quotes screens that many Xero users will now be used to.

This means a more consistent layout, similar navigation and buttons in more familiar locations. Xero says the aim is to make the software feel more intuitive and reduce the learning curve between different areas of the system. 

Xero’s hope is that the changes will simply feel like a tidier and more modern version of an existing process, but there are a few functional differences worth noting.

Key changes to be aware of

• Paid credit notes are now protected

One important change is that paid or allocated credit notes can no longer be edited directly. If changes are needed, any payment or allocation must first be removed, the amendments made, and then the payment or allocation reapplied.

This is designed to strengthen the audit trail and help keep records accurate. 

• Saving works slightly differently

Unlike some other areas of Xero, credit notes will not automatically save all changes as you work. This is definitely a fact to be aware of!

Xero will auto-save when you add a contact, allowing you to attach files or add notes, but you will still need to manually save additional details as you go. It’s worth keeping this in mind if you’re used to relying on automatic saves elsewhere in Xero. 

• Cash refunds have moved

If you issue cash refunds by cheque, the process has changed slightly. Users will now need to select ‘Add cash refund’ from the top of the credit note before completing the refund from the relevant transaction screen. 

Improvements behind the scenes

Alongside the visual refresh, Xero has introduced a number of usability improvements, including:

• More detailed history tracking, making it easier to see what changes have been made to a credit note
• Improved error messages to help resolve missing information more quickly
• A smoother keyboard and data-entry experience
• Better handling of credit notes during bank reconciliation. 

More changes are on the way

Xero has also promised further enhancements are planned, including quicker ways to process cash refunds and improved email previews when sending credit notes to customers. 

Want to know more?

If you use Xero regularly, it’s worth familiarising yourself with the updated Xero credit note layout now so there are no surprises when the current format is removed. Xero has published further information and screenshots explaining the changes in more detail on the Xero blog:

As always, though we’re happy to help where we can with Xero use issues and questions, your subscription includes access to the Xero experts through Support, so please start with them if you have questions.