diff --git a/src/containers/Drawers/InvoiceDetailDrawer/InvoiceDetailActionsBar.js b/src/containers/Drawers/InvoiceDetailDrawer/InvoiceDetailActionsBar.js
index 3a0a354cc..3042ae0db 100644
--- a/src/containers/Drawers/InvoiceDetailDrawer/InvoiceDetailActionsBar.js
+++ b/src/containers/Drawers/InvoiceDetailDrawer/InvoiceDetailActionsBar.js
@@ -14,7 +14,13 @@ import withDialogActions from 'containers/Dialog/withDialogActions';
 import withAlertsActions from 'containers/Alert/withAlertActions';
 import withDrawerActions from 'containers/Drawer/withDrawerActions';
 
-import { If, Can, Icon, DrawerActionsBar, FormattedMessage as T } from 'components';
+import {
+  If,
+  Can,
+  Icon,
+  DrawerActionsBar,
+  FormattedMessage as T,
+} from 'components';
 import {
   SaleInvoiceAction,
   PaymentReceiveAction,
@@ -48,6 +54,14 @@ function InvoiceDetailActionsBar({
     closeDrawer('invoice-detail-drawer');
   };
 
+  // Handle convert to invoice.
+  const handleConvertToCreitNote = () => {
+    history.push(`/credit-notes/new?from_invoice_id=${invoiceId}`, {
+      invoiceId: invoiceId,
+    });
+    closeDrawer('invoice-detail-drawer');
+  };
+
   // Handle delete sale invoice.
   const handleDeleteInvoice = () => {
     openAlert('invoice-delete', { invoiceId });
@@ -124,6 +138,7 @@ function InvoiceDetailActionsBar({
               onBadDebt: handleBadDebtInvoice,
               onCancelBadDebt: handleCancelBadDebtInvoice,
               onNotifyViaSMS: handleNotifyViaSMS,
+              onConvert: handleConvertToCreitNote,
             }}
           />
         </Can>
diff --git a/src/containers/Drawers/InvoiceDetailDrawer/utils.js b/src/containers/Drawers/InvoiceDetailDrawer/utils.js
index 3a8bdb695..2b4566b8b 100644
--- a/src/containers/Drawers/InvoiceDetailDrawer/utils.js
+++ b/src/containers/Drawers/InvoiceDetailDrawer/utils.js
@@ -76,7 +76,7 @@ export const useInvoiceReadonlyEntriesColumns = () =>
  * @returns {React.JSX}
  */
 export const BadDebtMenuItem = ({
-  payload: { onCancelBadDebt, onBadDebt, onNotifyViaSMS },
+  payload: { onCancelBadDebt, onBadDebt, onNotifyViaSMS, onConvert },
 }) => {
   const { invoice } = useInvoiceDetailDrawerContext();
 
@@ -104,6 +104,12 @@ export const BadDebtMenuItem = ({
               />
             </Choose.When>
           </Choose>
+          <Can I={SaleInvoiceAction.Edit} a={AbilitySubject.Invoice}>
+            <MenuItem
+              onClick={onConvert}
+              text={<T id={'convert_to_credit_note'} />}
+            />
+          </Can>
           <Can I={SaleInvoiceAction.NotifyBySms} a={AbilitySubject.Invoice}>
             <MenuItem
               onClick={onNotifyViaSMS}