Credit note template

Issue a credit note that reduces or cancels an invoice you already sent, with the original invoice number and the reason, instead of editing the original.

Free generators

  • Returned goods
  • Price adjustment
  • Cancelled service

Preparation guide

Give the customer enough detail to match each charge to an agreed quantity and completion condition.

Deliverables and line items
Returned goods, Price adjustment, Cancelled service: record the quantities actually supplied and the service period.
Quantity and billing unit
Use the agreed unit, such as hours, units or a fixed project, and record both quantity and rate.
Reference and dates
Add the purchase reference, service period and delivery date to distinguish this work from other orders.
Scope to agree
Quote the original invoice number and date and the reason for the credit, and split returned quantities or price adjustments by line.
  • Separate additional work from the original scope and check its approval record.
  • Distinguish included expenses from separately billed expenses and reconcile supporting records.
  • Match completed work to the order or approval record, and confirm the payment due date and amounts already received.

  1. Confirm scope and quantities

    Example: reconcile the approval and work record for "Returned goods" to establish the quantity for this invoice.

  2. Record delivery and acceptance

    Check completion for every line, including "Cancelled service". Match the delivery record to approved quantities and record who accepted the work.

  3. Send the billing record

    Send the final charges, delivery reference and due date to the customer, then reconcile payment against the invoice number.

What the document must show

These details make a credit note easier to approve and to file.

  • Your business name, address and registration or tax number
  • The customer's name and address
  • Issue date and a document number you do not reuse
  • Each line item with quantity, unit price and amount
  • Tax shown separately from the net amount, and the total payable
  • Payment terms: due date, bank details or accepted payment methods

The sales tax depends on where the work is supplied, so set the rate that applies to your customer before sending.

Official rate reference: US government: state and local taxes

Frequently asked questions

Credit note template: what should it include?
Start with the line items this template already carries — Returned goods, Price adjustment, Cancelled service — and replace them with what you actually supplied. Then check the required details above, especially the document number and the separated tax amount.
How is tax calculated on this template?
The sales tax depends on where the work is supplied, so set the rate that applies to your customer before sending. The editor keeps the net amount, the tax and the total apart, and recalculates all three when you change a quantity, a unit price or the country setting.
How should I number invoices?
Use one unbroken sequence per business, never reuse a number, and issue a credit note rather than deleting an invoice you have already sent.
Is this template free?
Yes. Editing and PDF export are free with an account; there is no payment step and no watermark on the document.
Can I download it as Excel, Word or PDF?
Yes. The spreadsheet and the Word file download straight from this page, and the spreadsheet keeps its formulas, so changing a quantity updates the tax and the total. For PDF, open the template and use Print / PDF.
Can I use it in another language or currency?
Yes. The document language can be set to any of 33 languages, and changing the country setting updates the currency, the date format and the tax rate.

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