Equipment off-hire credit note template
Equipment off-hire credit note template: credit the hire days paid in advance but not used after an early return, with the off-hire number and any re-rating.
Templates by industry
- Excavator 8 t: 4 hire days not used
- Breaker attachment: 4 days not used
- Damage waiver for the unused days
Preparation guide
Example workflow
Identify the invoice and the reason
Example: for "Excavator 8 t: 4 hire days not used", find the original invoice, note its number and date, and record the reason: a return, a price reduction or a cancellation.
Credit the affected lines
Enter the quantity or amount credited for each affected line, down to "Damage waiver for the unused days", so the tax on it is reversed in proportion.
Send and settle the credit
Send the credit note to the customer, then refund the amount or set it off against the next invoice, and keep both documents together.
Plant and tool hire is often invoiced in advance for the expected period. When the job finishes early and the customer calls the machine off hire, the days after collection were paid for but not used. This credit note returns them at the daily rate, together with charges that ran per day, such as damage waiver. If the original price was a weekly rate, the shorter period may fall into a dearer band, so check the price list before crediting.
Fields to prepare
- Deliverables and line items
- Excavator 8 t: 4 hire days not used, Breaker attachment: 4 days not used, Damage waiver for the unused days: only the lines being reduced or cancelled, with the quantity or amount credited.
- Excavator 8 t: 4 hire days not used
- Count unused days from the off-hire date confirmed by your depot, not from the day the customer stopped using the machine.
- Breaker attachment: 4 days not used
- Attachments hired with the machine come off hire with it unless the customer kept them; check the collection note.
- Damage waiver for the unused days
- Daily extras such as damage waiver or a GPS tracker follow the main item and are credited for the same days.
- Original invoice
- Quote the number and date of the invoice being corrected, and the reason: a return, a price reduction or a cancellation.
- Settlement
- Say how the credit is settled: refunded to the customer or set off against the next invoice.
- Scope to agree
- Quote the off-hire number and the return date, credit only the days after it at the agreed rate, and re-rate the period if a weekly price no longer applies.
Before sending
- Is “Excavator 8 t: 4 hire days not used” one of the lines being corrected, at the price on the original invoice?
- Is the quantity or amount credited for “Breaker attachment: 4 days not used” no more than was invoiced?
- Does the customer know why “Damage waiver for the unused days” is credited: a return, a price change or a cancellation?
Show 3 more
- Credit only the affected lines, and reverse the tax on them at the rate the original invoice used.
- Give the credit note a number of its own rather than reusing or changing the original invoice number.
- Agree with the customer whether the credit is refunded or set off before you send it.
Worked example with sample figures
The figures below are invented to show how the template adds up: 3 lines in USD, with an example tax rate of 8%.
| Item | Quantity × unit price | Amount |
|---|---|---|
| Excavator 8 t: 4 hire days not used | 4 × $185.00 | $740.00 |
| Breaker attachment: 4 days not used | 4 × $40.00 | $160.00 |
| Damage waiver for the unused days | 4 × $12.00 | $48.00 |
| Subtotal | $948.00 | |
| Sales tax (8%) | $75.84 | |
| Total | $1,023.84 | |
Credit before tax $948.00, sales tax reversed $75.84, total credited $1,023.84.
- The credit corrects invoice INV-2026-0652.
What the document must show
The details a credit note has to show, and why each one matters, are set out in the guide below.
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
Full requirements: Credit note vs invoice (and credit memo): how to issue one
Frequently asked questions
The hire was priced by the week. How do I credit three unused days?
Re-rate the period actually used at the price list’s rate for that length, then credit the difference between what was billed and the re-rated amount. Show the calculation in the notes so the customer can follow it.
Is there a minimum hire period?
Many hire terms set one, often a day or a week. Days inside the minimum are not credited even if the machine came back early; quote the clause if that applies.
How is the sales tax worked out on this credit note?
The worked example above uses an example rate of 8%: $75.84 on a net amount of $948.00, for a total of $1,023.84. The editor recalculates all three when you change a quantity, a price or the country.
Can I download it as Excel, Word or PDF?
Yes. A PDF needs no account: fill in the template and use Print / PDF. The Excel and Word files download from this page with a free account, and the spreadsheet keeps its formulas, so changing a quantity updates the tax and the total.
How is the document numbered?
QuoteBill gives each new document a unique number of its own. A member can switch to numbers in sequence in settings, such as CN-2026-0001: one sequence for each kind of document, starting again every calendar year. A number you type yourself is kept as it is.
Read next
Reading for the Equipment off-hire credit note template: Credit note vs invoice (and credit memo): how to issue one and Quote, proforma, invoice, receipt, credit note: which to use. The VAT and GST calculator helps you credit the tax that went with the goods.