Credit note generator — reduce an invoice for returns, discounts or overbilling

How to use the credit note generator

1. Under Document, enter the Credit note no., Date, the Against invoice no., the original Invoice date and a Reason (goods returned, discount after sale, overbilling corrected, deficiency in service or other).
2. Under Parties, fill in Issued by (you) and the Customer, with tax IDs.
3. Add the credited lines in Credited items — description, HSN / SAC, quantity, unit and rate.
4. Under Totals, choose the tax system and rate as on the original invoice.
5. Explain how the credit will be settled in Notes, then download the PDF or print it.

What it does and when to use it

Mistakes and returns happen after an invoice has gone out. A credit note is the clean way to fix them: a separate, numbered document that refers to the invoice and reduces it by an exact amount, including the tax on it.

Typical cases: a customer sends back damaged or wrong goods; you agree a discount after delivery; an invoice counted more units or a higher rate than agreed; a service fell short and you agree to charge less. In each case, list only the items being credited, at the price and tax rate used on the invoice.

The finished note carries the invoice reference and reason at the top, the credited items, a summary ending in “Total credit” with the amount in words, your notes and an “Authorised signatory” line.

How it works

Each line amount is quantity × rate, less any line discount. Tax is worked out on the total at each rate and rounded to the paisa or cent. With GST — India, the tax is split into CGST and SGST / UTGST at half the rate each, or shown as IGST for inter-state supplies. Total credit = credited value + tax. It all runs in your browser.

Worked examples

Returned brochures (the sample). Credit note CN-2026-006 against invoice INV-2026-009: 50 misprinted brochures at ₹42 = ₹2,100.00, IGST 18% ₹378.00, Total credit: ₹2,478.00 — “Two thousand four hundred and seventy-eight rupees only”.

Same customer in the same state. Unticking inter-state replaces IGST with CGST @ 9% ₹189.00 and SGST / UTGST @ 9% ₹189.00; the total is still ₹2,478.00.

An Australian customer. Currency AUD with single-rate GST at 10%: GST $210.00 and Total credit: $2,310.00.

Limits and tips

• Credit notes have their own number series; do not reuse invoice numbers.
• Record any refund in your books separately; when the customer later pays the reduced amount, a receipt confirms it.
• Before goods are supplied, a proforma invoice can be revised freely; credit notes are for invoices already issued.