Free Credit Note Generator

A credit note reduces what a client owes you on an invoice you’ve already sent. Issue one when you overbilled, the client returned goods, or you agreed a discount after the invoice went out. It references the original invoice number and shows the credit as a negative amount — the original invoice stays intact for your audit trail.

When to issue a credit note

  • Returned or defective goods — the client sends items back; you credit the returned portion.
  • Billing errors — wrong quantity, wrong rate, or a duplicate line. A credit note fixes the overcharge without voiding the invoice.
  • Post-invoice discounts — you negotiate a lower price after billing; the credit note documents the reduction.
  • Cancelled services — the client cancels partway through; you credit the undelivered portion.
  • Short shipments — you invoiced 500 units but delivered 480; the credit note covers the gap.

Worked example

You sent invoice INV-1001 for $500. The client returned $120 worth of goods. You issue credit note CN-1001 referencing INV-1001, with a single line item of −$120. The client’s new balance is $380 ($500 − $120). The original INV-1001 is untouched — the credit note is the paper trail.

What to include on a credit note

  • Your business details and the client’s details
  • A unique credit note number (e.g. CN-1001 — not an invoice number)
  • The date of issue
  • The original invoice number it adjusts (e.g. INV-1001)
  • Line items with negative amounts
  • The total credit amount, with tax adjusted to match the original
  • The reason for the credit (return, error, discount, cancellation)

Credit note vs refund

A credit note reduces the amount owed — it doesn’t move money. A refund returns money already paid. If the client hasn’t paid yet, the credit note lowers their balance. If they already paid the full invoice, issue the credit note first (for the records), then send the refund. The two documents together keep your books clean.

Make a credit note free — no signup

Make a credit note now — free, no signup. In the generator, set the document type to Credit Note — the number switches to the CN- prefix automatically. Enter the credited items as negative amounts, put the original invoice number in the notes, and download the PDF. Your data never leaves your browser.

Related

Last checked: October 2026. By Innvoic. A credit note is an accounting document, not tax advice — tax treatment of credit notes varies by jurisdiction.