Credit note

A credit note (also called a credit memo) is a document issued by a seller to a buyer that reduces or cancels the amount owed on a previous invoice. It can be partial, reducing the balance by a specific amount, or full, cancelling the invoice entirely.

Common reasons for issuing a credit note

• The customer returned goods or cancelled a service
• The original invoice contained an error (wrong price, quantity, or tax rate)
• A discount or adjustment was agreed after the invoice was issued
• The order was cancelled before fulfillment

Credit notes and tax

A credit note reverses the tax from the original invoice proportionally. If the original invoice included VAT or sales tax, the credit note reduces the taxable amount by the same amount, so your tax filings accurately reflect the net value of business transacted.

In Quaderno

Credit notes in Quaderno always show positive amounts. This represents money being returned or credited to your customer, which reduces the revenue recorded against them.