Mistakes happen. A client might overpay, an item may be returned, or a discount gets missed. In such cases, a credit note is the professional (and legal) way to make it right.
In this guide, we’ll explain what a credit note is, when to use one, and provide a perfect template you can use right away.
A credit note (or credit memo) is a document issued by a seller to a buyer to indicate a reduction in the amount owed. It’s often used to correct a previously issued invoice or to issue a refund.
You should issue a credit note when:
Here are the key components of a legally sound credit note:
Credit Note #: CN-2025-004
Date: June 30, 2025
Original Invoice #: INV-2025-112Customer:
John D. Enterprises
456 Elm Street
New York, NY 10001Reason for Credit: Returned item due to damage
Description Quantity Unit Price Amount Bluetooth Speakers 2 $50.00 $100.00 Subtotal: $100.00
Tax (10%): $10.00
Total Credit Issued: $110.00This credit will be applied to your next invoice or refunded as per our policy.
Issued By:
EasyGoInvoice
support@easygoinvoice.com
With EasyGoInvoice, you can:
Always reference the original invoice number and clearly state why the credit is issued to avoid confusion during bookkeeping or audits.
A credit note keeps your financial records accurate and shows professionalism. Using a standardized format not only builds trust with your clients but also simplifies accounting and tax filing.
Don’t leave it to guesswork — use our credit note template to maintain transparency and compliance.
🧾 Try creating your first credit note at
👉 https://easygoinvoice.com
Need help? Reach us anytime at support@easygoinvoice.com