> ## Documentation Index > Fetch the complete documentation index at: https://docs.getenso.ai/llms.txt > Use this file to discover all available pages before exploring further. # Invoices & Credit Notes > Learn how invoices and credit notes are managed in Enso. ## Invoices Invoices in Enso are generated to bill your customers for products or services.\ Invoices can be created automatically or manually, and each invoice goes through a defined workflow before it is finalized. *** ### How Invoices are Created * **Auto-generated:** Invoices are automatically created when a contract is set up. All such invoices start in the **Draft** stage. * **Manual creation:** You can also create invoices manually by navigating to **Invoices** > **Create Invoice** in the dashboard. Each invoice can have multiple **invoice items**, with each item representing a product or service. *** ### Invoice Lifecycle Invoices move through several states as part of their lifecycle: * **Draft:** Initial state. Invoices can be edited in this stage. * **Approved:** Invoice is reviewed and approved. * **Raised:** Invoice is finalized, assigned an invoice number, and the PDF is generated. * **Paid:** Payment has been received. * **Cancelled:** Invoice is voided. * **Credit Note Issued:** A credit note has been issued against the invoice. You can view the complete audit trail for each invoice under **Invoice Details**. *** ### Invoice Workflow image.png *** ### Key Points * An invoice number is assigned when the invoice is **Raised**; this is also when the invoice PDF is generated. * Invoices can be edited while in the **Draft** stage. * The invoice numbering prefix can be configured under **Settings** > **Invoice Templates**. * The same HTML template is used for both invoices and credit notes. You can customize or upload any HTML-based template under **Invoice Templates**. *** ## Credit Notes A **credit note** is issued to reverse or adjust an invoice, typically after an invoice is cancelled. ### Credit Note Workflow Credit notes have their own lifecycle: * **Draft:** Initial state; can be edited and commented on. * **Issued:** Credit note is finalized and issued. * **Cancelled:** Credit note is voided. Comments can be added at any stage for audit and collaboration. image.png *** ### Key Points * Credit notes can only be issued after cancelling an invoice. * Credit note numbering starts with **CN-** by default, unless configured otherwise in **Invoice Templates**. * The same HTML template is used for both invoices and credit notes, and can be customized under **Settings** > **Invoice Templates**. *** For more details on setting up invoice templates, see [One time setup](../org-setup). ***