Credit note and credit memo template
Free credit note generator
A credit note (credit memo in the US) cancels part or all of an invoice you already sent.
- Free credit note generator
- Cites the original invoice
- Printable sheet or PDF
- Nothing leaves your browser
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What a credit note is for
Built for the moment after the invoice has gone out and something has to come back off it. An overcharge, returned goods, a job canceled halfway, a duplicate that went twice. The credit note is how you fix it without deleting the invoice, which is the thing your accountant will ask you not to do. It names the original invoice, gives a reason, and credits an amount back. The example on this page starts against invoice INV-2026-0118 for $1,840 and takes $340 of it back.
An invoice that has gone out is a record. You do not edit it and you do not delete it, because the copy your client has will no longer match the copy you have, and because in most places the numbering has to run unbroken. A credit note is the correction that leaves both copies intact: the invoice still says $1,840, the credit note says $340 comes back off it, and the two read together.
That is also why the original invoice number is the one field on this page that cannot be skipped. A credit note with no invoice on it is an amount with nothing to attach to, and it will sit on an account unapplied until somebody works out what it was meant to cancel.
How to write a credit note
Cite the invoice, pick the reason, credit the lines that were wrong rather than all of them, and print it, save it as a PDF or send it. Nothing you type leaves your browser. In order:
- Name the original invoice: its number and its total, so the credit can be matched to it.
- Pick the reason: overcharge, returned goods, canceled work, duplicate invoice, price adjustment, damaged on arrival, short delivery or goodwill.
- Credit only the lines that were wrong, with the quantity and price that are coming back off.
- Apply the same tax rate the invoice charged, so the tax is reversed with the amount.
- Give the credit note its own number in its own series, such as CN-2026-0007, then send it to the customer's accounts address.
What a credit note must include
Everything on this list prints on the sheet this page makes:
- The words credit note, so nobody mistakes it for an invoice
- Its own credit note number and the date it was issued
- Your business name and address
- The customer's name and address
- The original invoice number and the invoice total
- Each line credited, with quantity, price and amount
- The tax reversed and the total credited
- The reason for the credit
- Who authorized it
Partial credits are the normal case
Most credits are not the whole invoice. A line was priced wrong, one item came back, half the job was canceled. Credit those lines and leave the rest alone, because a full credit followed by a fresh invoice creates two documents where one would do and makes the account harder to read afterwards.
The page starts with one line rather than the whole invoice copied over, which is the shape most credits actually take.
If the invoice was wrong and needs replacing, the button under the sheet carries these lines straight into the invoice generator so the corrected bill quotes the same wording rather than something typed again from memory. If the client has been sent several documents, the statement of account generator puts the invoice, the credit and any payments on one page with a running balance.
Credit note example
A filled-in credit note, using sample names and figures:
- Credit note CN-0031, dated May 6, 2026, against invoice INV-1188 dated April 28.
- Reason: two of the twelve chairs on the order arrived damaged and were returned.
- Line: 2 dining chairs at $85.00 each, $170.00.
- Sales tax reversed at the same 8% rate the invoice charged, $13.60.
- Total credit $183.60, applied to the customer's account rather than refunded.
The original invoice stays as it was. The customer now owes the invoice total less $183.60, and a statement of account shows both documents side by side.
Credit note vs credit memo, refund and debit note
A credit note and a credit memo are the same document: credit memo is the usual name in the US, credit note in most other places. Whichever you call it, it has to cite the invoice it reduces.
A credit note reduces what is owed. A refund moves money back. They are not the same thing and often only one of them happens: if the invoice is unpaid, a credit note settles it on its own and no money moves at all.
A debit note runs the other way, raising what is owed rather than reducing it. If the invoice was too low, you are usually better issuing a second invoice for the difference than a debit note, because an invoice is the document everyone's system already understands.
Voiding is different again: a void invoice stays in the sequence marked as canceled, and it suits the case where no money has moved. The void invoice entry covers when to void and when to credit.
Questions people ask
What is a credit note?
A credit note is a document that cancels part or all of an invoice you have already sent. It names the original invoice, gives a reason, and credits an amount back to the client's account. The invoice itself stays exactly as it was. For the full definition with an example, see credit note meaning.
Can I just delete or edit the invoice instead?
You should not. The client already has a copy, so editing yours means the two no longer agree, and invoice numbering is normally expected to run unbroken. A credit note leaves the record intact and corrects it in the open.
Does a credit note mean I have to refund money?
Not by itself. A credit note reduces what is owed. If the invoice has not been paid, the credit settles it and nothing moves. If it has been paid, the credit is what justifies the refund, and the refund is a separate step.
How do I number credit notes?
Use a unique, sequential number in its own series, such as CN-2026-0007, and never reuse one. Keeping credit notes in their own series rather than mixed into your invoice numbers makes them far easier to find later.
Can I credit part of an invoice?
Yes, and that is the usual case. Credit only the lines that were wrong. The page will tell you if the total you are crediting is larger than the invoice you named, because that is almost always a mistake rather than an intention.
What reason should I put on it?
Whichever is true: overcharge, returned goods, canceled work, duplicate invoice, price adjustment, damaged on arrival, short delivery or goodwill. Accounts teams sort credits by reason, so a vague one slows the credit down.
Does a credit note need a signature?
It does not have to be signed, but a name on it tells the client who authorized the credit, which is the question their accounts team asks first. Sign by typing the name or drawing it with a finger, and it prints on every export.
Does tax come off too?
Normally yes. If the original invoice charged sales tax, VAT or GST on the amount you are crediting, the credit note carries the same tax rate so the tax is reversed with it. Set the same rate here that the invoice used.
Can I turn this into a replacement invoice?
Yes. The button under the sheet carries the lines, the client and the currency into the invoice generator, so the corrected invoice quotes the same wording rather than something retyped.
How do I save a credit note as a PDF?
Use Print or save PDF and choose Save as PDF as the destination in your own print dialog. The sheet is scaled to one page first, so it does not split, and printing gives the sharpest, selectable file.
Is a credit note the same as a credit memo?
Yes. They are the same document under two names. Credit memo is the usual term in the US and credit note is used in most other places. Either way it reduces what the customer owes on an invoice you already sent.
What is the difference between a credit note and a debit note?
A credit note reduces what the customer owes. A debit note increases it. If an invoice was too low, a second invoice for the difference is usually clearer than a debit note, because every accounts system already handles invoices.
Can I use this as a credit note template?
Yes. It is a fill-in credit note template: every field shows what goes there until you fill it in, the sheet updates as you type, and you print it or save it as a PDF. There is nothing to download first.
Can a credit note be canceled or changed after I send it?
Treat it like an invoice: do not edit the copy the customer already has. If it was wrong, issue a new document with its own number that corrects it, and name the credit note it replaces so both sides can follow the change.
Can I give a credit note for a discount after the invoice?
Yes. A price adjustment agreed after the invoice went out is a common reason for a credit note. Choose Price adjustment agreed as the reason and credit the amount of the discount.
Do credit notes expire?
There is no single rule. Whether a credit can lapse depends on the terms you agreed with the customer and on the rules where you trade. If you intend a credit to expire, say so in the note on the credit note, and check with your accountant first.
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