Credit note template

Questions

What is a credit note?

A document that corrects or cancels an invoice you have already sent. Instead of changing the invoice, you issue a credit note for the amount you are taking back, with a reference to the original invoice. In the EU and the UK a sent invoice must not be edited or deleted, so this is how corrections are made.

When do I need one?

When the client returns goods, you agree a discount after invoicing, you charged too much or the wrong VAT, or the job is cancelled after the invoice went out. For a wrong amount, credit the old invoice and send a new, correct one.

What must a credit note include?

The same details as an invoice: its own number in sequence, the date, your details and the client’s, what is being credited and the VAT on it. Plus the number and date of the invoice it corrects.

Should the amounts be negative?

Either is accepted. PlainPaid shows the amounts as credited under a clear “Credit note” title, and counts them as negative in your money summary and in the CSV export for your bookkeeping.

How do I make one from an invoice I already sent?

Open the invoice in My invoices and choose Correct with a credit note. It copies the lines and the reference; remove or change lines to credit only part of it. The original invoice stays as it was.