Free Credit Note Generator
A credit note reduces what a customer owes on an earlier invoice: for returned goods, a price correction, a discount agreed after the sale or a cancelled service. In GST and VAT systems it also corrects the tax you charged.
Enter the original invoice number, list what is being credited (negative quantities are allowed here) and the tax is reversed with the same rules as the invoice. Download the PDF and keep it with the original invoice.
What a credit note should include
- The words "Credit Note" and its own number
- The original invoice number
- Reason for the credit
- Items credited with quantities and prices
- Tax reversed at the original rates
- Total credit amount
Frequently asked questions
Can a credit note have negative amounts?
Yes. Credit notes are the one document here that accepts negative quantities or prices.
Do I need to mention the original invoice?
Yes, most tax authorities require the original invoice number and date. Enter it in "Original invoice number".
Is a credit note the same as a refund?
Not exactly. A credit note reduces the amount owed; you may then refund money or offset it against future invoices.