Templates
Credit note format, free in Excel, Word and PDF
A credit note reduces what a customer owes on an invoice you have already issued: goods came back, the price was too high, or the service fell short. Download the format with every field the note needs.
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Filled with the sample shown. The Excel file has formulas for tax and totals.
In short
A credit note is issued by the supplier to reduce the amount and tax on an earlier invoice, for returns or overcharges. The download here is free, and SimpleERP posts the same note against the invoice, reversing tax and stock.
Harbor Supply Co.
Tax number 100 234 567
Credit note
CN-2026-0003
Issued to: Summit Interiors
- Office chair mesh2 pcs
- Steel rack 4 shelf1 pcs
- LED panel 2×23 pcs
What this document is for
Once an invoice is issued it is not edited. If the customer returns goods or you charged too much, you issue a credit note that refers to the original invoice. In a VAT or GST country it reduces your output tax and the customer's reclaimable tax by the same amount; under sales tax it reduces the tax you collected.
- Returns: two chairs came back damaged, so their value and tax are credited.
- Price corrections: the invoice used last month's price; the difference is credited.
- Poor service: part of the work was not done and the customer will not pay for it.
What a credit note must contain
A credit note that amends an invoice is treated as part of the invoice, so it carries the same details plus a reference to the invoice it corrects. The template carries every one of them.
- Your name, address and tax number as the supplier issuing the note.
- The words "Credit note" at the top, so nobody pays it as an invoice.
- A note number in its own series, such as CN-2026-0003, and the date of issue.
- The customer's name, address and tax number if they have one.
- The original invoice number and date the note corrects.
- Amount, tax rate and tax credited per line, with the total.
- The reason for the credit, so your auditor can follow it.
How to fill the template
Put your header in once
Replace Harbor Supply Co. with your name, address and tax number. Keep the title "Credit note".
Number it in its own series
Credit notes need their own numbers, separate from invoices, and the date you issue the note.
Quote the original invoice
Write the invoice number and date. A note may refer to more than one invoice; list each.
Enter only what is being credited
Returned quantity at the invoiced price, or the price difference on the full quantity. Never more than the invoice carried.
Charge the same tax rate
Use the rate on the original invoice, even if the rate has changed since, then sign and send it.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Office chair mesh | 2 pcs | $74.00 | $148.00 |
| Steel rack 4 shelf | 1 pcs | $57.00 | $57.00 |
| LED panel 2×2 | 3 pcs | $21.00 | $63.00 |
| Amount credited | $268.00 | ||
| Tax at 20% | $53.60 | ||
| Credit note total | $321.60 |
Make it in SimpleERP instead
Open the invoice and choose Credit note. The lines are copied from the invoice; reduce the quantities to what came back, give a reason, and post. Tax and stock are reversed in the same step.
- Capped at what was invoiced. Quantity and value cannot exceed the invoice line, less earlier notes.
- Output tax reverses at the rate the invoice charged.
- Returned goods go back into stock at the cost they left at, when Returns stock is on. Turn it off for a price correction.
- Apply it to open invoices or refund it in cash or to the customer's bank, and the balances update.
- Prints titled "Credit note" with "Against invoice" and the reason.
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
Fields
Every field on a credit note, and why
Article 219 treats a document that amends an invoice and refers to it specifically as an invoice, so a credit note carries the article 226 details. Other VAT and GST countries word it differently but ask for the same; check your country's rules.
| Field | Required | Why |
|---|---|---|
| Your business name, address and tax number | Mandatory | The supplier issues the note, as it issued the invoice. |
| Nature of the document | Mandatory | Says Credit note or Debit note at the top, so nobody pays it as an invoice. |
| Note number | Mandatory | A unique number in its own series. |
| Date of issue | Mandatory | Decides the tax period the adjustment is reported in. |
| Customer's name, address and tax number | Mandatory | The customer adjusts the tax they reclaimed against it. |
| Original invoice number and date | Mandatory | Links the note to the invoice it corrects; an amending document must refer to it specifically. |
| Taxable amount, tax rate and tax amount | Mandatory | The value and tax being reduced or added, at the rate of the original invoice. |
| Reason for the note | Good practice | Return, price difference or short supply; your auditor will ask. |
| Signature or name of the person issuing it | Good practice | Not required everywhere, but it shows who approved the adjustment. |
Source: EU VAT Directive 2006/112/EC, articles 219 and 226, verified 5 November 2026.
Common mistakes
Mistakes to avoid on a credit note
- Editing or deleting the original invoice instead of issuing a credit note, which leaves the tax already reported unexplained.
- Numbering credit notes in the invoice series, so the invoice series shows a gap and the notes are hard to report.
- Leaving out the original invoice number and date, so neither side can match the note.
- Crediting at today's price or tax rate instead of the rate on the original invoice.
- Missing your country's time limit for reducing tax with a note, then claiming the reduction anyway.
- Crediting more quantity than was invoiced, often when a second return on the same invoice is missed.
Honest limits
Honest limits
- No e-invoicing network or government portal link: if your country requires notes to be reported electronically, report the note yourself.
- No tax return filing. Your accountant reports the note in your return from the posted documents.
- A note cannot be edited after posting. Cancel it while nothing is applied or refunded, then issue a new one.
Getting started
Start with your first invoice
Sign up with your email
Name, email and a password. No card for the seven-day trial.
Tell us about the business
Pick your country and type your tax number. Currency, tax rates, accounts, units, roles and numbering are set up for that country.
Add what you sell
Add your products and customers, or import them from a spreadsheet. Raise an invoice; the credit note will refer to it.
Post your first invoice
Pick the customer, add lines and save. Your first tax invoice can be out within 10 minutes of signing up.
FAQ
Questions, answered
Do I have to issue a credit note to correct an invoice?
In most countries, yes. Tax rules treat an issued invoice as final, so a reduction is made with a credit note that refers to it. If goods come back or you overcharged and you do not issue one, the tax on the original invoice stays as it was.
Does a credit note reduce the tax I owe?
Yes. You reduce your output tax in the return for the period the note is issued, and a registered customer reduces the tax they reclaimed by the same amount. Some countries set a time limit for doing so, so check yours.
Can one credit note cover several invoices?
Usually, as long as the note lists each invoice it corrects. Keep each line at the tax rate of the invoice it came from.
What does the credit note in the download total?
Two chairs, one rack and three LED panels returned by Summit Interiors: $268.00 before tax, $53.60 tax, $321.60 in all. The Excel file computes it with formulas.
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