What is the log in which we can apply credit notes?
Yes, a credit note can be applied on multiple invoices in certain scenarios. However, the immediate Invoice value should be less than the credit note value.
For eg., If there is a credit note for $100 and an Invoice is generated for the customer for $75, the credit note will be applied to this Invoice. The balance $25 will be applied to the next Invoice of the customer.
If the Invoice value is greater or equal to the credit note value, then the credits cannot be split. It will only be applied to the immediate Invoice after the credit note was created.
So by default, the credit note will be applied to the immediate invoice after it was created. Only when the Invoice value is lower than the credit note value, it can be applied to the next invoice of the customer.