Recogniser shows a credit note in your inbox once it's been allocated to an invoice (or bill) in your accounting software. The credit note appears directly beneath the invoice it relates to.
If the invoice was paid on its own and the credit note was refunded on its own (for example, the customer was charged and then refunded directly through Stripe), the two were never allocated to each other. With no invoice to show it against, the credit note doesn't appear in your inbox.
Allocating the credit note to the invoice fixes this. The invoice comes back into your inbox with the credit note beneath it, flagged with an Edited in Xero tag, ready to add to the schedule at its net value.
One thing to know before you start: the invoice has a payment attached to it, and the credit note has a refund attached to it, so neither can be allocated against the other yet. The first step is to unwind the cash, so you can then allocate the credit note.
Before you start
These steps may require you to change payments and allocations in your accounting file, including transactions that may already have been reconciled. If the period is locked, you'll need to unlock it before you can make any changes.
If the credit note is for the full invoice
On the invoice, remove the payment and post it to a holding account (a suspense account, or your revenue account also works).
On the credit note, remove the refund and post it to the same holding account. The two are equal and cancel out, leaving nil there.
On the invoice, allocate the credit note. As it covers the full value, the invoice nets to zero.
The invoice comes back into your inbox with the credit note beneath it. You can individually select the schedule to apply to the invoice and the credit note, then click Add to Schedule, and both will be added to your schedule in Mayday.
If the credit note is for part of the invoice
On the invoice, remove the payment.
On the credit note, remove the refund.
On the invoice, allocate the credit note. The invoice now shows an outstanding balance of the invoice less the credit note.
Settle that remaining balance by allocating part of the original payment to the invoice.
Post what's left of the payment, and the refund, to a holding account. They're equal and cancel out, leaving nil.
Worked example
Invoice of £150, paid £150. Credit note of £100, refunded £100.
Allocate the £100 credit note to the invoice, leaving £50 outstanding. Allocate £50 of the original £150 payment to the invoice to settle it. The remaining £100 of the payment, and the £100 refund, both go to the holding account, where they cancel out.
The invoice comes back into your inbox with the credit note beneath it. You can individually select the schedules to apply to the invoice and the credit note, then click Add to Schedule, and they'll be taken to the schedule in Mayday and released accordingly.
For how credit notes behave once they're allocated, see How to manage credit notes in Recogniser.