Introduction
When you issue a credit note in Xero Malaysia, it must also be validated through LHDN’s MyInvois portal — just like a regular e-Invoice.
A credit note e-Invoice (or Debit Note in MyInvois terminology) is used to adjust or cancel an earlier validated invoice, usually due to returns, discounts, or billing errors.
This guide explains how to submit and validate credit note e-Invoices in Xero through Invoici, how to read their validation status, and what to do if they are rejected by LHDN.
Step 1: Create and Submit the Credit Note in Xero
In Xero, go to Sales → Invoices.
Select New Credit Note or open the original invoice and click Add Credit Note.
Fill in the following details carefully:
Reference to the original validated invoice number.
Buyer and supplier TIN/BRN.
Correct MyInvois classification code for the products or services or line item.
Click Approve.
Allocate Credit Balance to the respective invoice.
Email the credit note to myinvois@invoi.ci, where the credit note will be sent to LHDN for validation through Invoici.
Xero will send the credit note automatically to MyInvois via Invoici for validation.
💡 Tip: Always link the credit note to a previously validated invoice; standalone credit notes will be rejected by MyInvois.
Step 2: Understand Credit Note Validation Status
Status | Meaning | What You Should Do |
✅ Validated / Approved | The credit note has been accepted by LHDN. | No action needed. A validated copy is saved under Files → LHDN Validated Credit Notes. |
⏳ Pending | Sent to MyInvois but not yet processed. | Wait for several minutes and refresh. |
❌ Rejected | Validation failed because of missing or incorrect information. | Check the error message in History and Notes, fix the issue, and resubmit. |
Step 3: Check Validation Details in Xero
To review the validation response:
Open the credit note in Xero.
Scroll down to History and Notes.
You will see the Invoici submission log, including timestamps and any MyInvois response messages.
If rejected, note the error reason before correcting and resubmitting.
Step 4: Fix Common Credit Note Validation Errors
Issue | Cause | Solution |
Unlinked to original invoice | Credit note not referencing the validated invoice. | Recreate or edit the credit note and link it to the correct invoice. |
Missing TIN/BRN | Contact details incomplete. | Update buyer/supplier TIN or BRN in Xero contacts. |
Invalid classification code | Wrong or blank code in item lines. | Assign proper MyInvois Classification Code. |
Incorrect amount sign | Positive values entered instead of negative. | Ensure amounts are negative for credit notes. |
Duplicate credit note reference | Same reference number reused. | Change to a unique credit note reference. |
Step 5: Download or Share the Validated Credit Note
Once the credit note is validated by LHDN:
A validated PDF (with QR code and validation link) will be automatically saved in Xero in specific transaction.
You may attach this validated version when notifying your customer of the adjustment.
Step 6: Best Practices for Credit Note Validation
Always issue the credit note using the same TIN, BRN, and classification codes as the original invoice.
Verify that the invoice number reference matches the validated e-Invoice ID in MyInvois.
Do not delete or edit validated credit notes — instead, issue a new adjustment if required.
Keep validated copies for at least seven years for tax audit purposes.
Frequently Asked Questions (FAQs) about How to Validate an E-Invoice for Credit Note in Xero Malaysia?
Q1: Do I need to validate every credit note?
Yes. Each credit note must be validated through MyInvois to adjust or reverse an existing e-Invoice legally.
Q2: Can I issue a credit note without a reference to an original invoice?
No. Credit notes must always reference the original validated invoice ID; otherwise, MyInvois will reject it.
Q3: What happens if I validate a credit note with the wrong amount?
You must cancel and reissue the credit note with the correct amount — MyInvois does not allow editing validated documents.
Q4: How soon after the original invoice can I issue a credit note?
You can issue it anytime after validation of the original invoice, as long as both documents reference the same buyer and supplier details.
Q5: Where can I view all validated credit notes in Xero?
Go to Files → LHDN Validated Credit Notes or generate a report under Business → Invoices → Credit Notes to filter by validation status.