Credit note: when to issue one and what to put in it
A credit note reverses an invoice, in whole or in part. You issue one when the price was wrong, goods came back, the service was not delivered, or a discount was agreed after invoicing. You do not fix an invoice by rewriting it — you issue a credit note against it.
What it must contain
- The words "Credit note" and its own number.
- An explicit reference to the invoice being credited: number and date.
- The reason for the credit, in plain language.
- The credited lines with net amounts and tax rates, not just a total.
- The amount credited to the customer.
- How the credit will be settled: refund, offset against the next invoice, or balance note.
Mistakes we see most often
- Not naming the original invoice, which makes reconciliation impossible.
- Crediting a gross amount without splitting net and tax.
- Issuing a second, "corrected" invoice while leaving the first one standing.
- Reasons like "error" that do not say what was actually corrected.
Typical structure
| Title | CREDIT NOTE no. 2026/009 |
| Reference | Against invoice 2026/112 of 11 Sep 2026 |
| Reason | Return of 2 non-conforming units |
| Lines | The credited lines, with quantity and tax rate |
| Totals | Net · Tax · Total credited |
| Settlement | Offset against the next invoice |
Frequently asked questions
Can I credit only part of an invoice?
Yes. A credit note can be partial: credit only the affected lines or quantities and leave the rest of the original invoice standing.
What numbering should I use?
Either a dedicated series (CN/2026/001) or your invoice series, as long as it stays sequential. What matters is that the reference to the credited invoice is always there.
Is a Workio credit note a tax document?
It is a non-fiscal PDF, like every other Workio document. Where your country requires a structured credit note, that comes from your accounting software; the PDF stays the readable copy.
How quickly should it be issued?
Deadlines depend on your country and on the reason. As a rule of thumb: as soon as possible — the longer you wait, the harder reconciliation gets.