Warranty claim credit note template

Warranty credit note template: defective units by serial number, the claim number, labor allowance and replacement freight, against the original invoice.

Templates by industry

  • Defective units under warranty
  • Labor allowance
  • Replacement part freight

Preparation guide

A credit note reduces or cancels an invoice you have already sent. It points back to that invoice and says why, so both sets of books show the change instead of an edited original.

Deliverables and line items
Defective units under warranty, Labor allowance, Replacement part freight: only the lines being reduced or cancelled, with the quantity or amount credited.
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 warranty claim number, the serial numbers of the faulty units and the defect found, and the invoice they were sold on.
  • 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.

  1. Identify the invoice and the reason

    Example: for "Defective units under warranty", find the original invoice, note its number and date, and record the reason: a return, a price reduction or a cancellation.

  2. Credit the affected lines

    Enter the quantity or amount credited for each affected line, down to "Replacement part freight", so the tax on it is reversed in proportion.

  3. 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.

What the document must show

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

  • A number of its own and the issue date
  • The number and date of the original invoice
  • The reason: a return, a price reduction or a cancellation
  • The lines being credited, with quantity and amount
  • The tax being reversed, and the total credit
  • How it is settled: a refund, or set off against the next invoice

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

Warranty claim credit note template: what should it include?
Start with the line items this template already carries — Defective units under warranty, Labor allowance, Replacement part freight — 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.
Why issue a credit note instead of editing the invoice?
An invoice you have sent is part of both parties' records. A credit note with its own number, the original invoice number and the reason reduces or cancels it, so both sets of books stay traceable.
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.