Free credit note template (Word)

A credit note that reduces or cancels an invoice: the original invoice number and date, the reason, each credited item and amount, optional tax, the total credit, and whether it is refunded or applied to an outstanding or future invoice.

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Does the maths for you: fill it in online and the subtotal, tax and total credit are calculated as you type.

No sign-up. Your answers stay in your browser. Who it is for: Freelancers and small businesses correcting an invoice, giving a discount after the fact or refunding returned goods.

Updated 6 October 2026 · Word (.docx) · Free to use and adapt

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What is in the credit note

Your business and a credit note number
The original invoice number and date
Customer details
Reason for the credit
Credited items with amounts
Subtotal, optional tax and total credit
Refund, or applied to another invoice
Optional notes and contact

First page of the free credit note template for Word

Read the full template

This is the complete wording. [Labels] are filled in from your answers, and highlighted text only appears when it applies; hover over it to see when.

[Business name]

[Business address]

CREDIT NOTE

Credit note number: [Credit note number]

Date: [Credit note date]

Original invoice: [Invoice being credited]

Invoice date: [Original invoice date]

CREDIT TO

[Customer name]

[Customer address]

REASON

[Reason for the credit]

Credited item	Amount
Repeated for each credited item
[Description]	[Amount]

Subtotal	[Subtotal]
[Name of the tax] ([Tax rate (%)]%)	[Tax]
Total credit	[Total credit]

HOW THE CREDIT IS APPLIED

We will refund [Total credit] by [Refund method] within [Refund days] days.The credit of [Total credit] will be applied to [Apply the credit to].

[Notes]

Questions about this credit note: [Contact email]

The questions you answer

Clausery turns the template into a short questionnaire. Optional parts only appear when they apply, and anything marked Calculated for you is worked out from your other answers.

Question	Type	Asked when
Business name	Short text	Always
Business address	Long text	Always
Contact email	Email	Always
Credit note number	Short text	Always
Credit note date	Date	Always
Invoice being credited	Short text	Always
Original invoice date	Date	Always
Customer name	Short text	Always
Customer address	Long text	Always
Reason for the credit	Long text	Always
Credited items For each item: Description, Amount	Repeating group	Always
Subtotal	Calculated for you	Always
The invoice charged tax, so credit it too	Yes / no	Always
Name of the tax	Short text	If “The invoice charged tax, so credit it too” is yes
Tax rate (%)	Number	If “The invoice charged tax, so credit it too” is yes
Tax	Calculated for you	If “The invoice charged tax, so credit it too” is yes
Total credit	Calculated for you	Always
Refund the money (rather than credit a future invoice)	Yes / no	Always
Refund method	Short text	If “Refund the money (rather than credit a future invoice)” is yes
Refund days	Number	If “Refund the money (rather than credit a future invoice)” is yes
Apply the credit to	Short text	If “Refund the money (rather than credit a future invoice)” is no
Add a note	Yes / no	Always
Notes	Long text	If “Add a note” is yes

How to use it

Open it
Click Fill it in now. The template opens in Clausery with its questionnaire ready.
Answer the questions
Work through the sections. Drafts save as you type, on your device.
Download the document
Get a finished Word file with your formatting intact, or print it to PDF.

Prefer to start from your own wording? Download the Word file, edit it, keep the {tags}, and upload it to Clausery. See the template syntax.

Questions

What is a credit note?

A document that reduces the amount a customer owes on an invoice you have already issued, for example after a return, an overcharge or an agreed discount.

Can I just edit the original invoice instead?

It is better not to. Issuing a credit note keeps your invoice numbers and records consistent, which accountants and tax authorities expect.

Does a credit note need tax on it?

If the original invoice charged sales tax or VAT, the credit note should reverse the tax on the credited amount too.

Is it really free?

Yes. The download is free, and filling it in with the Clausery app is free too, with unlimited documents. Library templates never count towards a plan limit, and no account or card is needed.

Is my information uploaded anywhere?

No. Clausery runs entirely in your browser. Your answers and the finished document are created and stored on your own device.

Is this legal advice?

No. These are general samples. Laws differ between countries and states, so have the wording reviewed for your situation before you rely on it.

Guide: What is a credit note? When to issue one, what it must say

Free tool: Invoice due date calculator: when the next invoice falls due

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This template is a general sample and not legal advice. Laws vary by jurisdiction; have it reviewed before use.