I had a credit note that I allocated to an invoice that I’d already paid. The balance on account wasn’t changed and now my account is showing that I still owe the amount of the credit note which I don’t and now I have 2 invoices showing as partially paid or unpaid. Unfortunately the CN is in a previous VAT period.
There’s a balance on this supplier’s account due to the first two invoices on your screenshot. One is unpaid (£132.16) and the other is partially paid (balance left £4.83) the total account balance is therefore £136.99.
I did notice however that the credit note you created (second from bottom), deposited that £136.99 to the supplier account so presumably all you want to do now is attach this to those two outstanding invoices. To do that just go to each invoice and click to log a payment, you will then see an option to pay from credit.