Does a credit note need its own number?

Yes, from its own sequence, such as CN-0001. It should never reuse an invoice number.

Where do I reference the original invoice?

In the notes, for example: Credit against invoice INV-0042 dated 3 March. That is how the customer's accounts team matches the two.

What goes in the due date?

A credit note has no payment due. Leave it empty, or use it for the date a refund will be paid.

Do the amounts go in as negatives?

No. Enter the items and prices as positive figures. The heading Credit Note tells the reader the amounts are owed back, and positive figures avoid totals that read as a minus balance.

Can I use this as a credit note template?

Yes. The on-page form is the editable template: add the customer, original invoice reference and credited items, check the preview, then download the completed PDF. There is no separate blank credit note file to fill by hand.

Free Credit Note Generator

Reduce or cancel an invoice without editing it. Fill the form, watch it build itself, download the PDF. No sign up, no watermark, and nothing you type is sent anywhere.

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What a credit note does

A credit note reduces or cancels an invoice you have already issued. It is how you correct a mistake, record returned goods or apply a discount after the event, without touching the original invoice.

The original stays in your records exactly as it was sent. The credit note sits beside it, and the two together show what the customer actually owes.

What to put on it

The words Credit Note and its own number.
The date you issue it.
Your details and the customer's, as on the original invoice.
The original invoice number and date.
Each item credited, with quantity and price.
Any tax being reversed, at the original rate.
The total credited, and whether it will be refunded or set against the next invoice.

Tax on credit notes

If the original invoice charged VAT or GST, the credit note may need to show the corresponding tax adjustment on the credited amount. The rate and accounting period depend on the original transaction and local rules, so check them before issuing it.

In Australia the equivalent document is called an adjustment note. The principle is the same: the original invoice must be identifiable from it.

Full or partial credit

If the whole invoice was wrong, credit it in full and issue a fresh, correct invoice with a new number. If only part was wrong, credit just the lines or the amount in question.

Keep the original and the credit note together so the correction is traceable in your records.

How to make a credit note

Give the credit note its own number, such as CN-0001.
Enter the customer exactly as on the original invoice.
List what is being credited, at the prices on the invoice.
Use the same tax rate as the original, and write the original invoice number in the notes.
Download the PDF and send it to the customer.

Questions about credit notes

Does a credit note need its own number?: Yes, from its own sequence, such as CN-0001. It should never reuse an invoice number.
Where do I reference the original invoice?: In the notes, for example: Credit against invoice INV-0042 dated 3 March. That is how the customer's accounts team matches the two.
What goes in the due date?: A credit note has no payment due. Leave it empty, or use it for the date a refund will be paid.
Do the amounts go in as negatives?: No. Enter the items and prices as positive figures. The heading Credit Note tells the reader the amounts are owed back, and positive figures avoid totals that read as a minus balance.
Can I use this as a credit note template?: Yes. The on-page form is the editable template: add the customer, original invoice reference and credited items, check the preview, then download the completed PDF. There is no separate blank credit note file to fill by hand.