An open credit note in isolation on accounts receivable does not present a particular problem but if there are lots of them could indicate a problem customer account, a potential cash flow problem if customers requested cash instead of offsetting against future invoices or it could uncover a deficiency in the sales invoicing process.

These are all things that would warrant further investigation.  It could take some time to look for these in Xero by manually going through each accounts receivable ledger or report so Hindsight does it for you.

If we find any open sales credit notes we will return them for you with a Xero hotlink to the transaction in Xero.  There is also a link to the aged receivables report should you wish to have a look at the whole ledger.