Create a professional credit note for free

What is a credit note?

A credit note is a document used to reduce or correct the amount owed on a previous invoice. It can be used for refunds, returned goods, pricing corrections, discounts or invoice adjustments.

When should you use one?

Use a credit note when you need to show that a client has been credited for part or all of a previous invoice. The credit note should clearly explain the reason and refer to the original invoice where possible.

What should a credit note include?

• Your business name and contact details.
• The client or customer details.
• A clear credit note number and date.
• The original invoice date or reference.
• The products, services or charges being credited.
• The tax, discount and total credit amount.
• The reason for the credit.

Credit note mistakes to avoid

• Not referencing the original invoice.
• Using unclear line item descriptions.
• Forgetting to explain the reason for the credit.
• Showing tax incorrectly where it applies.
• Confusing a credit note with a receipt or refund proof.