Free Credit Note Template (Excel, Word) + Sample and Format

Free Credit Note Template (Excel, Word) + Sample and Format

14 November, 2022

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Used by finance executives across 700+ leading order-to-cash teams.

  • Step 1: Download any one of the 3 credit note templates according to your choice.
  • Step 2: Copy and paste the template into your Gmail/Outlook
  • Step 3: Personalize the email according to your requirement and hit send
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CONTENT
Introduction
What is a credit note template?
Credit Note Format (What to Include)
Credit note sample - how it typically looks
3 ready-made credit note templates
Why should you choose HighRadius’ ready-made credit note templates?
FAQs
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Introduction

A real-life use-case of a credit note template is when you accidentally overcharge a client. When you do this, you can take the help of a credit note to return or overwrite the extra amount that you charged by mistake, without re-creating the invoice from scratch. You must also keep in mind that deleting an invoice can be deemed unlawful in some countries and is considered a punishable offense.

Credit memos are also used by banks while adding the interest amount earned on the deposit.

What is a credit note template?

A credit note template is a pre-formatted document used by businesses to issue refunds, adjustments, or corrections to an invoice. It includes details like customer information, invoice reference, amount credited, and reason for issuance.

Instead of creating a credit note from scratch, businesses can use a standard template and customize it based on the situation. Businesses often maintain multiple templates for different scenarios, each with a unique reference number for tracking.

If an invoice has already been fully paid, the credit note cannot be applied to that invoice directly. Instead, it can be adjusted against future invoices for the same customer. There is also no fixed time limit for issuing a credit note, as long as it aligns with your accounting policies and agreements.

Credit Note Format (What to Include)

A credit note is a document that is issued by a seller to their clients where the credit details applied to the books is mentioned. Here are some elements to be included in a credit note.

  1. Company details
  2. Customer details
  3. Original invoice reference
  4. Credit amount
  5. Reason for credit
  6. Date and authorization

Credit note sample - how it typically looks

A typical credit note includes key details such as the original invoice reference, credited amount, and reason for adjustment. For example, a supplier may issue a credit note to a customer due to returned goods, pricing discrepancies, or billing errors.

Most credit notes follow a structured format with clearly defined fields for company details, customer information, and transaction adjustments—ensuring accuracy and traceability across financial records.

3 ready-made credit note templates

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Why should you choose HighRadius’ ready-made credit note templates?

Now that you know why and when to use a credit note template, the next step is to enter the data into the template and send it to your client.

HighRadius’ Credit App offers credit note templates that are easy to use and share. Here’s how our credit note templates help:

  • The pre-added company logo establishes professionalism and trust, reinforcing the company’s brand-building effort.
  • You get to know the right place to add your company’s address and your client’s address.
  • The date the credit note was issued will be mentioned in the document itself making it easier for your client to keep note of the due date.
  • A crystal-clear structure of the credit note template makes it easier for you to fill in the blank line items.

For more credit note template options and other features such as credit risk scoring, cash application, and collections worklist prioritization, check out our AR solution suite.

Take a demo to check out the product.

FAQs

1. What is the purpose of a credit note?

The purpose of a credit note is to notify the buyer that a credit amount is being applied to their account.

2. What is an example of a credit note?

If a product is priced at $100 and is incorrectly invoiced at $150, then a credit note rectifies the price of the product, by offering the customer a credit of $50 which they can use during a later purchase.

3. How is a credit note different from an invoice?

An invoice is a bill where all the products or services offered by the seller are itemized. A credit note, on the other hand, is a document that rectifies the misprinted amount in the original invoice.

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