Free Credit Note Generator
Correct or reduce an invoice properly. Download the PDF.
A credit note reduces or cancels an invoice you have already sent. Create one that references the original invoice, states the reason and shows exactly what is being credited.
Free to use, with no account and no watermark. Add your logo, pick a layout and a color, and download a clean PDF when you are done.
How to use the credit note generator
- Add your details and the customer being credited.
- Enter the credit note number and the original invoice number.
- State the reason and list the items being credited.
- Add the tax adjustment, then download the PDF.
Why use Invoicz
Original invoice reference
Links the credit to the invoice it corrects.
Reason for credit
Makes the correction easy to understand and audit.
Tax adjustment
Shows the tax reversed on the credited amount.
Own number
Keep credit notes in their own sequence, apart from invoices.
What a credit note does
An invoice creates a debt. A credit note reverses part or all of it, with a clear record of why. It keeps your numbering intact and gives auditors a clean trail.
When to issue one
- Goods were returned.
- A price or quantity was wrong.
- A discount was agreed after invoicing.
- A service was cancelled.
- An invoice was sent twice or to the wrong customer.
What to include
- The words Credit note and a unique number.
- The original invoice number and date.
- The reason.
- Items or amounts credited, with tax.
- The total credit and how it will be applied.
Example
One hosting setup was billed twice. Credit: $60.00 plus $4.80 sales tax, total credit $64.80, applied to invoice 0014.
This tool provides general information and is not tax or legal advice.
Frequently asked questions
What is a credit note?
A credit note is a document a seller sends to reduce or cancel part or all of an invoice already issued, for example after a return, a pricing error or a service problem. It lowers what the customer owes.
What is the difference between a credit note and a refund?
A credit note adjusts the amount owed on the account. A refund returns money that has already been paid. A customer may use the credit against a future invoice or receive a refund, depending on your policy.
Is a credit note the same as a credit memo?
In practice yes. “Credit memo” is the more common US term and “credit note” is common in the UK, EU and elsewhere. Both reduce an invoice.
What should a credit note include?
A unique credit note number, the date, both parties’ details, the original invoice number and date, the reason, a description and amount of each credited item, any tax adjustment and the total credit.
Does a credit note have to reference the original invoice?
It should. Referencing the original invoice number keeps your books and the customer’s books consistent, and in VAT and GST systems it is usually required so the tax can be adjusted correctly.
Should the amounts be negative?
No. Enter the credited items as normal positive amounts. The document is titled Credit note and shows Total credit, so the meaning is clear.
How do I handle tax on a credit note?
Use + Tax with the same rate that applied to the original items so the tax you credit matches the tax you charged. Check your local rules for how credit notes are reported.
Can I issue a partial credit?
Yes. List only the items or the amount being credited, and state the reason. The original invoice remains valid for the rest.
How do I create a credit note?
Open the generator, add your business and the customer, enter the credit note number and the original invoice number, give the reason, list the credited items and add the tax adjustment if tax applied. Then download the PDF.
Is it legal to give a credit note instead of a refund?
It depends on the country and the situation. Many places allow a credit note if the customer agrees, but consumers often keep a right to a refund for faulty goods or services not provided. Check your local consumer law. This is general information, not legal advice.
What is the difference between a credit note and a debit note?
A credit note reduces the amount a customer owes. A debit note increases it or records an extra charge. The terms are used a little differently between countries and accounting systems.
What is the difference between a credit note and an invoice?
An invoice asks for payment. A credit note reduces or cancels what was invoiced, so the customer owes less or has a credit to use.
How is this different from a credit note template in Excel?
Totals and the tax adjustment are calculated for you and you receive a finished PDF with the original invoice and reason on it, rather than a spreadsheet to maintain.
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General information, not tax or legal advice. Check the rules that apply to you.Last updated: