How to make a credit note in one minute
- Open the invoice in Recent documents and choose Convert to credit note, or start blank and fill in From (your business) and Credit to (the customer).
- Check the Credit note number (its own CN- sequence) and the Credit note date, then enter the Original invoice number the credit applies to.
- Keep only the lines being credited: Delete the others or reduce Qty for a partial credit. Rates stay positive; the totals block shows the result as a credit.
- Leave the Tax lines exactly as they were on the original invoice so the tax credited matches the tax charged.
- Write the reason in Notes (returned goods, overcharge, cancelled booking) and say whether you are refunding or holding the credit on account, then press Download PDF.
What to include on a credit note
A credit note, sometimes called a credit memo, undoes part or all of an invoice. To do that job it has to point clearly at the invoice it corrects and mirror how that invoice was taxed, so the editor asks for a few things a plain invoice does not.
The heading and its own number. The document is titled Credit Note and takes a number from a separate CN- series. It is never a reissue of the invoice number.
The original invoice. Original invoice number is a dedicated field and prints under the meta block; put the original date in Notes if your customer’s accounts team likes to see it. Without this reference the customer cannot tell which invoice the credit belongs to.
From and Credit to. Your business details, including any tax registration number, go in From; the customer goes in Credit to, with their tax ID if the original invoice carried one.
The items or amounts being credited. List the lines exactly as they appeared on the invoice, with the same descriptions and rates, keeping only what is being credited. For a price correction, credit the full line and issue a corrected invoice, or credit a single line for the difference. Quantities and rates stay positive: the document type tells the reader that these are amounts owed to the customer, not by them.
The same tax treatment as the original. If the invoice charged VAT at 20 percent or GST plus PST, the credit note carries the same lines and rates, so the tax credited equals the tax charged on those items.
The total, shown as a credit. The totals block is labelled Total credit and Credit issued rather than Total and Balance due. There is no due date and no payment terms picker.
The reason. Returned goods, overcharge, cancelled service, duplicate invoice: one sentence in Notes, plus whether the credit is refunded or held on account.
When to use a credit note generator instead of editing the invoice
The rule is simple: correct a draft, credit a sent invoice. Until an invoice has been sent, open it and change it. Once the customer has a copy, it may already be posted in their ledger or included in a tax return, and quietly replacing it leaves the two sides holding different documents. A credit note fixes the amount while leaving the original intact, and the pair explains itself to anyone auditing either business.
The fastest route is Convert to credit note on the invoice itself. The customer, lines, tax lines and invoice number are copied into a new credit note with the next CN- number; you delete what stays valid, adjust quantities and add the reason. Mark the original invoice as Void only when the credit cancels it entirely and you are issuing a replacement; otherwise leave its status alone and keep the credit note beside it. If money is going back, record the refund date and reference in Notes so the question of whether the customer got their money is answered on the same page.
Your data stays on your device
Credit notes and the invoices they correct are stored in your browser only; no customer data leaves your device. The PDF is generated in your browser by a small worker; nothing is uploaded, and there is no account to create. Drafts, clients and your business profile live in your browser's local storage (IndexedDB), and one button under "Your data" deletes all of it. To verify, open your browser's developer tools, watch the Network tab while you fill in and download a document, and note that no request carries your details. Read the privacy policy and how it works for the details.
Templates, currencies and PDF output
| Templates | Classic, Modern, Minimal, Compact, Ledger, Receipt (6 layouts; accent colour and logo are yours). Prefilled invoice and receipt templates by trade open in the same editor. |
|---|---|
| Currencies | 68 ISO currencies with the right symbol and decimals, for example USD, CAD, GBP, EUR, AUD, INR and JPY. Country presets also set the tax lines and ID labels. |
| Paper sizes | A4 and US Letter; page numbers on multi-page documents |
| Numbering | Sequential per type, default prefix CN-0001, editable |
| Output | PDF download (text stays selectable), print, or a prefilled email with the PDF attached by you; file name Credit-Note-number-client.pdf |
Frequently asked questions
What is a credit note and when do I need one?
A credit note is a document that reduces or cancels an invoice you already sent, without touching the invoice itself. You need one when goods come back, when you overcharged, when a service was cancelled after billing, or when the customer was invoiced twice. It is the accepted way to correct a sent invoice, because both documents stay on record.
What is the difference between a credit note and a refund?
The credit note is the paperwork; the refund is the money. A credit note can be settled by paying the customer back, or by holding the amount on account and deducting it from their next invoice. Say which in Notes. If you do pay a refund, the credit note is the document that explains why the payment went out.
Should the credit note show tax?
Yes, with the same tax lines and rates as the original invoice, so the tax credited equals the tax originally charged on those items. That is what lets both sides adjust their tax records correctly. Convert to credit note copies the tax lines for you; if you start blank, add them under Totals. Confirm the treatment with your tax authority.
How should I number credit notes?
Give credit notes their own unbroken sequence, CN-0001, CN-0002 and so on, separate from invoices, and always state the Original invoice number on each one. The editor keeps a dedicated counter for credit notes and warns about duplicates. Never reuse the invoice number with a suffix; a credit note is its own document.
Can I just edit or delete the original invoice instead?
If the invoice has not left your device, yes: open it and fix it. Once it has been sent, do not; the customer has a copy, and it may already be in their books or a tax return. Issue a credit note for the wrong amount and, if needed, a fresh invoice for the right one, so the paper trail explains itself.
Is a credit note a legal or tax document?
In VAT and GST systems a credit note is generally the recognised way to correct tax already invoiced, and the rules on what it must show vary by country; this page cannot tell you what applies to you. What is universal is that it references the original invoice, states the amount credited and the tax on it, and gives a reason.
How do I send a credit note to the customer?
Download the PDF and attach it to an email, or press Email to open your mail app with the subject and a short message filled in. The file name carries the credit note number and customer. If you are refunding, mention the payment date and reference in the same message so the customer can match it.
Can I credit only part of an invoice?
Yes. After Convert to credit note, delete the lines that were correct and lower the quantity on any line that was partly returned. The Total credit is calculated from what remains, with tax in proportion. The original invoice keeps its status; note the credit against it in your records so the balance is clear.
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Last updated 2026-09-27. Presets are starting points — confirm current rates and requirements with your tax authority. PDF engine: pdfmake (MIT); fonts: Inter and Noto Sans (SIL Open Font License).