Credit memo template
A credit memo reduces the amount a customer owes on an invoice already issued, for a return, an overcharge or a goodwill adjustment. It corrects the account without deleting the original invoice. Fill in the fields and download a clean PDF in any currency, with no watermark.
When do you use a credit memo?
Issue a credit memo when an invoice has already been sent and the amount owed needs to come down, rather than editing or deleting the original.
What should a credit memo include?
- Your business details
- Customer details
- Credit memo number and date
- Original invoice number
- Reason for the credit
- Items or amounts being credited
- Total credited
Frequently asked questions
What is a credit memo?
A credit memo is a document that reduces the balance a customer owes against an invoice already issued. It records the reason and the amount, leaving the original invoice intact.
Is a credit memo the same as a credit note?
Yes. Credit memo is the term used most in the United States, credit note in the UK and Europe. They are the same document and this builder produces both.
Why not just edit the original invoice?
Because the original has already been sent and probably recorded in both sets of books. Editing it breaks the audit trail. A credit memo corrects the balance while leaving the history visible.
Does a credit memo mean money is refunded?
Not necessarily. A credit memo reduces what is owed and is often set against a future invoice. If money actually goes back to the customer, a refund note records that separately.
Should a credit memo reference the original invoice?
Always. Without it neither side can match the credit to the sale, and reconciliation becomes guesswork.