What is a credit note and how do you write one?

Invoices don’t always come out right. Learn how to make a credit note to give customers a refund on part of an invoice after it has already been sent.

What is a credit note?

Errors and changes happen. It’s not uncommon to send a customer an invoice only to realize you overcharged them for certain supplies or services. Instead of voiding the original and writing a new invoice — which could confuse and mess up accounting processes — you can issue a credit note to adjust the totals.

Credit notes are negative invoices designed to give a refund on part of an invoice. They’re an extension of the original to correct any errors. Think of them like a “P.S.” for your invoices.

Information to include.

Learning how to write a credit note isn’t much different than learning how to write an invoice. They both contain basically the same information. The only difference is that the credit note should include a reference to the original invoice.

Here’s the essential information to include on all credit notes:

Because you’re giving money back to the customer, many businesses require a signature on credit notes for authorization and approval. Customers don’t like to wait when it comes to resolving overcharged invoices, so use an e-signature software like Acrobat Sign to speed up the process.

When you use an e-signature, you can approve and authorize credit notes without fighting with printers, scanners, or fax machines. Simply add your legal signature with a click of your mouse and send the credit to the customer.

Explore more ways to simplify your invoicing processes and make sending credit notes and making e-signatures easier with Acrobat Sign.