Free credit note generator

What a credit note is

A credit note (sometimes called a credit memo) reduces or cancels an amount you invoiced. Use it when goods are returned, a price was wrong, a discount was forgotten or a service was cancelled. Instead of changing or deleting the original invoice, you issue a separate document that refers to it. Your records stay complete and every number stays in sequence, which matters to tax authorities.

When to issue one

• The customer returned some or all of the goods.
• You charged the wrong price or quantity.
• You agreed a discount or refund after invoicing.
• The invoice went to the wrong customer or must be cancelled entirely.

What to include

• The title "Credit note".
• Its own number. The generator numbers credit notes separately (CN-0001, CN-0002…).
• The original invoice number, in the "Original invoice" field, so it is clear what is being corrected.
• Your details and the customer's details, exactly as on the original invoice.
• The lines being credited, with quantities and prices, and the tax on them.
• The total credited, and in the notes, how it will be settled: a refund, or a deduction from the next invoice.

Refund or credit?

A credit note does not always mean money goes back. You can refund the customer, or keep the credit on their account and deduct it from their next invoice. Say which in the notes so there is no confusion.

In many countries, tax rules say exactly how corrections must be made, and some require electronic invoicing systems for them. Check with your accountant if you are registered for VAT or GST. For disputes and corrections in general, read our guide to client billing.