Create professional credit notes for refunds, returns, price adjustments, and billing corrections. No signup, no watermark.
Create Credit Note Free💡 Use our free invoice generator to create credit notes — fill in the details, reference the original invoice number, and note the credit amount. Download as PDF instantly.
A credit note (also called a credit memo) is a document issued by a seller to a buyer to reduce the amount owed. It is essentially a negative invoice — the seller owes the buyer money, either as a refund, store credit, or offset against future invoices. Credit notes are used for returns, billing errors, overpayments, or agreed price reductions after an invoice has been issued.
Positive amount. Seller is owed money by buyer. Creates an accounts payable entry.
Negative amount. Seller owes buyer a refund or credit. Cancels or reduces an existing invoice.
Actual money returned. A credit note authorises the refund. A bank transfer or payment reversal executes it.
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Open Free Invoice Generator →Not exactly. A credit note is a document that authorises a refund or credit — it is an accounting record. An actual refund is the transfer of money. You issue a credit note to formally record the obligation, then process the refund separately (bank transfer, card reversal, etc.).
If your original invoice included VAT or sales tax, your credit note must also show the same tax amount being reversed. This is important for your buyer's tax records and your own tax filings. Our invoice generator includes a tax rate field for this purpose.
Use a sequential numbering system separate from your invoices — for example CN-001, CN-002, or prefix with the year: 2026-CN-001. Always reference the original invoice number on the credit note so both parties can match the documents.