Skip to content
Apps

Menu

OZO Credit Note

Free Credit Note Generator

Issue a credit note for a refund, return or correction, linked to the original invoice. Amounts are shown as credits, ready to download as a PDF.

  • Free forever
  • No signup
  • Saved in your browser

Your business (From)

Who the document is from.

Logo
Address, website and tax ID

e.g. VAT, GST, NTN

Credit to

Who the document is for.

Address and tax ID

e.g. VAT, GST, NTN

Credit note details

Numbers continue automatically on your next document.

Credit details

Items

Drag the handle (or focus it and use the arrow keys) to reorder.

  1. Credit $0.00

Currency, tax and totals

Prices are
Prices are

Shown on tax lines, e.g. VAT, GST, Sales tax

Subtotal
$0.00
Total
$0.00

Notes, terms and signature

Signature (optional)

How to issue a credit note

  1. 1

    Add your business and the customer

    Enter your details and the customer’s, exactly as they appeared on the original invoice.

  2. 2

    Reference the original invoice

    Enter the invoice number being credited, or create the credit note from the invoice and OZO fills it in.

  3. 3

    Choose the reason

    Pick a reason such as goods returned, overcharge or a cancelled order, so the customer’s accounts team can process it.

  4. 4

    List what is being credited

    Add the items or amounts being refunded or corrected, with tax. They are shown as credits on the document.

  5. 5

    Download or send

    Download the PDF and send it to your customer, then mark it as applied or refunded once settled.

What is a credit note?

A credit note (sometimes called a credit memo) cancels all or part of an invoice. It keeps your records and your customer's in step: the original invoice stays as it was, and the credit note shows exactly what was taken off and why.

What a credit note includes

  • Its own number (CN-0001, CN-0002…), separate from your invoice numbers.
  • The original invoice number it relates to.
  • The reason for the credit.
  • The items or amounts credited, with tax shown separately, and the total credit.
  • How it will be settled: refunded, or applied to the customer's account.

Credit note vs refund receipt vs invoice

An invoice asks for payment and a receipt confirms it. A credit note reduces what was invoiced. If you then return money to the customer, the credit note is your record of why.

Frequently asked questions

What is a credit note?

A credit note is a document a seller issues to reduce the amount a customer owes on an invoice, for example after a return, an overcharge or a cancelled order. It is the formal way to correct an invoice once it has been sent.

Why not just edit or delete the invoice?

Once an invoice has been sent it is part of both businesses’ records, and in many countries tax rules require it to stay unchanged. A credit note corrects it with a clear, numbered paper trail.

Does a credit note mean I must refund the money?

Not necessarily. The credit can be refunded or kept on the customer’s account and taken off their next invoice. Mark the credit note as refunded or applied accordingly.

How do I create a credit note from an invoice?

Open the invoice and choose “Create credit note”. OZO copies the customer and items and fills in the original invoice number; remove anything that is not being credited.

Is the credit note generator free?

Yes. Create and download credit notes for free, with no signup and no limits.

Related tools