diff --git a/payment_status_in_sale/__manifest__.py b/payment_status_in_sale/__manifest__.py
index e7979cd41..e26af7933 100644
--- a/payment_status_in_sale/__manifest__.py
+++ b/payment_status_in_sale/__manifest__.py
@@ -21,7 +21,7 @@
 ###############################################################################
 {
     'name': 'Sale Order Payment Status',
-    'version': '18.0.1.0.0',
+    'version': '18.0.1.0.1',
     'category': 'Sales',
     'summary': 'Displays the payment status and details in the Sale Order.',
     'description': """This module is used to display the invoice status of the
diff --git a/payment_status_in_sale/doc/RELEASE_NOTES.md b/payment_status_in_sale/doc/RELEASE_NOTES.md
index 9d9e1e8a2..440cfa14c 100644
--- a/payment_status_in_sale/doc/RELEASE_NOTES.md
+++ b/payment_status_in_sale/doc/RELEASE_NOTES.md
@@ -4,3 +4,8 @@
 #### Version 18.0.1.0.0
 ##### ADD
 - Initial commit for Sale Order Payment Status
+
+#### 25.06.2025
+#### Version 18.0.1.0.0
+##### ADD
+- Bug fixed to ensure the correct payment status is reflected when credit notes are created.
\ No newline at end of file
diff --git a/payment_status_in_sale/models/sale_order.py b/payment_status_in_sale/models/sale_order.py
index 62e750a05..687f549c6 100644
--- a/payment_status_in_sale/models/sale_order.py
+++ b/payment_status_in_sale/models/sale_order.py
@@ -95,13 +95,19 @@ class SaleOrder(models.Model):
     @api.depends('invoice_ids')
     def _compute_amount_due(self):
         """The function is used to compute the amount due from the invoice and
-        if payment is registered."""
+        if payment is registered, accounting for exchange rate differences and credit notes."""
         for rec in self:
-            amount_due = 0
-            for order in rec.invoice_ids:
-                amount_due = amount_due + (order.amount_total -
-                                           order.amount_residual)
-            rec.amount_due = rec.amount_total - amount_due
+            total_invoiced = 0
+            total_paid = 0
+            for invoice in rec.invoice_ids:
+                if invoice.move_type == 'out_invoice':  # Regular invoices
+                    total_invoiced += invoice.amount_total
+                    total_paid += invoice.amount_total - invoice.amount_residual
+                elif invoice.move_type == 'out_refund':  # Credit notes
+                    total_invoiced -= invoice.amount_total
+                    total_paid -= (
+                                invoice.amount_total - invoice.amount_residual)
+            rec.amount_due = total_invoiced - total_paid
 
     def action_open_business_doc(self):
         """ This method is intended to be used in the context of an