Credit Note Template

A credit note template for cancelling or reducing an invoice you have already issued – for example because goods were returned, a price was wrong, a discount was agreed after invoicing or work was not completed. It includes a VAT version and a non-VAT version, an internal credit note request and authorisation form, a credit note register and guidance on the VAT rules.

• When a customer returns goods or a service is cancelled after invoicing
• To correct an overcharge or a mistake on an invoice that has already been sent
• When you agree a price reduction or retrospective discount

• Get the credit note authorised internally using Form 2 before issuing it
• Quote the original invoice number and date and explain the reason for the credit
• Number credit notes in their own sequence (for example CN-0001)
• Record whether the credit will be refunded or set against future invoices