CREDIT NOTE
===========

Disclaimer — not legal advice. This template is provided free of charge, as is and with no warranty of any kind, and using it creates no attorney-client relationship. It is jurisdiction-neutral: you are responsible for adapting it, for your own legal and tax compliance, and for having a qualified professional in your jurisdiction review it before you rely on it. Full terms: https://trycolo.co/terms-of-use

[YOUR BUSINESS NAME]
[YOUR ADDRESS], [CITY], [COUNTRY]
[YOUR EMAIL] | [YOUR PHONE]
Tax ID: [YOUR TAX ID]

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Credit note details
-------------------

Field                   | Detail
----------------------- | -----------------------------------------
Credit note number      | [CN-YYYY-001]
Issue date              | [DATE]
Original invoice number | [INVOICE NUMBER]
Original invoice date   | [DATE]
Original invoice total  | [CURRENCY] [AMOUNT]
Currency                | [CURRENCY — same as the original invoice]

Issued to
---------

[CLIENT LEGAL ENTITY NAME — as on the original invoice]
[CLIENT BILLING ADDRESS]
Client tax ID: [CLIENT TAX ID — if shown on the original invoice]
Attention: [CONTACT NAME] | [BILLING EMAIL]

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Reason for credit
-----------------

[CHOOSE AND ADAPT ONE:]

- [ ] Billing error: [e.g. "Line 3 was billed at [RATE] instead of the agreed [RATE]."]
- [ ] Duplicate charge: [e.g. "Line 5 duplicated line 2 (same work, same date)."]
- [ ] Canceled work: [e.g. "Deliverable [NAME] was canceled by the client on [DATE] before work began."]
- [ ] Agreed discount or service credit: [e.g. "Goodwill credit agreed with [NAME] on [DATE] for delayed delivery."]
- [ ] Full cancellation: [e.g. "Invoice issued to the wrong entity. A replacement invoice [NEW INVOICE NUMBER] has been issued."]

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Credited lines
--------------

# | Original line | Description                               | Qty credited | Rate   | Amount credited
- | ------------- | ----------------------------------------- | ------------ | ------ | ---------------
1 | [LINE NO.]    | [DESCRIPTION, as on the original invoice] | [QTY]        | [RATE] | [AMOUNT]
2 | [LINE NO.]    | [DESCRIPTION]                             | [QTY]        | [RATE] | [AMOUNT]

Credit totals
-------------

                                                                |
--------------------------------------------------------------- | -------------------
Credit subtotal                                                 | [CURRENCY] [AMOUNT]
Tax reversed at [TAX RATE]% (same rate as the original invoice) | [CURRENCY] [AMOUNT]
Total credit                                                    | [CURRENCY] [AMOUNT]

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Revised position on invoice [INVOICE NUMBER]
--------------------------------------------

                                            |
------------------------------------------- | --------------------
Original invoice total                      | [CURRENCY] [AMOUNT]
Less this credit note                       | -[CURRENCY] [AMOUNT]
Revised invoice total                       | [CURRENCY] [AMOUNT]
Already paid by the client                  | [CURRENCY] [AMOUNT]
Balance still due / (amount owed to client) | [CURRENCY] [AMOUNT]

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Settlement
----------

[CHOOSE ONE:]

- [ ] Invoice unpaid: the balance due on invoice [INVOICE NUMBER] is reduced to [CURRENCY] [AMOUNT], payable by the original due date of [DATE].
- [ ] Refund: [CURRENCY] [AMOUNT] will be refunded by [BANK TRANSFER / CARD REFUND / PAYPAL] to [ACCOUNT] by [DATE].
- [ ] Credit applied forward: [CURRENCY] [AMOUNT] will be deducted from invoice [NEXT INVOICE NUMBER / the next invoice issued], referencing this credit note.

Authorized by: [YOUR NAME], [TITLE] — [DATE]

Questions: [YOUR EMAIL]. Please quote credit note [CN NUMBER] and invoice [INVOICE NUMBER].

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How to use this template

1. Issue a credit note for any change to an invoice that has already been sent; edit only unsent drafts.
2. Copy client details, currency and tax rate exactly from the original invoice.
3. State the reason in one or two plain sentences.
4. For a full cancellation, credit the whole invoice, then issue a fresh one with a new number.
5. Keep credit notes in their own number series and file them with the original invoice.

Template provided by Colo (trycolo.co). Not legal advice — review with a qualified professional in your jurisdiction.