How to fill out a credit note
A credit note cancels or reduces an invoice that has already been issued. It is a commercial adjustment between seller and buyer, and it is often reached for when the right instrument is a reissued invoice — a distinction that matters because a credit note does not change the value goods were entered at.
The 13 fields on a credit note
Taken from the document itself, in the order it prints them.
- Document No.
Its own reference, from a separate series to your invoices. Sharing a sequence makes it impossible to tell a debit from a credit in your own records.
- Date
- Invoice No.
The invoice this credits. Without it the note is unattached and neither accounts system can match it, which is the most common reason a credit sits unapplied for months.
- Currency
The invoice's currency, not your reporting one. Crediting in a different currency creates an exchange difference neither party agreed to.
- Reference
Anything that identifies the underlying event: a return authorisation, a claim number, the shipment reference. It is what makes the credit auditable a year later.
- Payment Terms
Whether this is set against a future invoice or refunded. Left unstated, the buyer assumes refund and you assume offset.
- Seller
- Buyer
- Notes
Why the credit exists, in a sentence. \u201cShort shipment, 40 cartons invoiced, 38 received\u201d is auditable. \u201cAdjustment\u201d is not, and it is the line an auditor will ask about.
- Name
- Title
- Place
- Date
The line-item columns
One row per product. Columns can be hidden, renamed or added in the generator.
- Item #
- Description
Matching the original invoice line, so the two documents can be reconciled without interpretation.
- Qty
How many units are being credited, not the original order quantity. Crediting two cartons of forty means this column reads 2.
- Unit
- Unit Price
The price from the original invoice. Crediting at a different rate is a repricing, which is a different conversation and should not be buried in a credit note.
- Amount
A working credit note, prefilled with a sample shipment. Every field above is editable here, and it downloads as a PDF.
| Item # | Description | Qty | Unit | Unit Price (USD) | Amount (USD) | |
|---|---|---|---|---|---|---|
Your entries are kept as you move between documents: the parties, ports, container and line items all carry across.
It does not amend a customs declaration
This is where credit notes get misused. If the invoice was wrong when written — a typo, a wrong price, a wrong classification — the fix is to reissue the invoice and, where an entry has been filed, to amend it with the customs authority. A credit note leaves the declared value standing and creates a gap between your accounts and the customs file.
When it is the right instrument
When the invoice was correct at the time and something changed afterwards. A short shipment, goods returned, an agreed discount, a price adjustment negotiated after delivery. The original document remains valid and the credit adjusts it, which is exactly what happened commercially.
Tax follows the credit
Where the original invoice carried recoverable tax, the credit note generally has to carry the corresponding reversal, in the form the jurisdiction prescribes. On zero-rated exports there is usually nothing to reverse, but the note should still show the treatment rather than leaving it blank.
+Can a credit note fix a wrong HS code?
No. That is a document error, so the invoice is reissued and the entry amended. A credit note changes an amount, not a classification.
+Does a credit note need to reference the original invoice?
Practically always, and in many jurisdictions as a legal requirement for tax purposes. Without the reference it is an unexplained reduction.
+What if the goods were returned but customs already cleared them?
The credit handles the commercial side; the customs side is a separate procedure for returned goods, which may allow a duty refund if claimed in time and evidenced.
Judge it by the document, not the feature list.
Everything above is already on the form. Fill it in and download the PDF — no account needed.
Open the credit note generator