3 Free Downloadable Credit Note Templates for Business

3 Ready-Made Credit Note Templates [Free Download]

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Used by finance executives across 700+ leading order-to-cash teams.

Step 1: Download any one of the 3 credit note templates according to your choice.
Step 2: Copy and paste the template into your Gmail/Outlook
Step 3: Personalize the email according to your requirement and hit send

3 Ready-Made Credit Note Templates [Free Download]

CONTENT

Introduction

What is a credit note template?

What are the different elements of a credit note template?

Why use a credit note template?

3 ready-made credit note templates

Why should you choose HighRadius’ ready-made credit note templates?

FAQs

Introduction

A real-life use-case of a credit note template is when you accidentally overcharge a client. When you do this, you can take the help of a credit note to return or overwrite the extra amount that you charged by mistake, without re-creating the invoice from scratch. You must also keep in mind that deleting an invoice can be deemed unlawful in some countries and is considered a punishable offense.

Credit memos are also used by banks while adding the interest amount earned on the deposit.

What is a credit note template?

A credit note template is a ready-made document that can be utilized over and over again to issue additional credit to clients.
A credit note template is extremely helpful to a seller because it saves a lot of time by enabling the reuse of the same credit memo format. Credit note templates include information that is needed every time such as the contact details, company number, terms and conditions, and the company logo.

Hence, instead of creating a credit note from scratch, you can open the master copy of the template, and customize it according to the situational needs. You can have multiple credit note templates and differentiate between them by assigning a unique identifier number to each one of them.

In case the customer has already paid the invoice in full, you will not be able to apply the credit note against that particular invoice. Instead, when you raise an invoice to the same customer for the next order, you’ll be able to apply the credit note. It should also be noted that there is no particular time limit for issuing the credit note.

What are the different elements of a credit note template?

A credit note is a document that is issued by a seller to their clients where the credit details applied to the books is mentioned. Following are some of the contents in a credit note:

Name and address of the business
Type of the document- whether credit or debit note (A debit note is a document issued by a seller that notifies the buyer about the current debt obligations.)
Date of credit note issue
A unique identification number (It should not be more than 16 characters)
Signature of the supplier

Why use a credit note template?

A credit note template helps suppliers in the following ways:

Saves time and energy

A template can be reused several times by the supplier, saving time and effort. Instead of entering the data each time, you just have to review the existing, pre-filled template and customize it from client to client.

Carries a consistent and professional tone

A credit note template helps maintain consistency across client communications and helps standardize the process of issuing credit memos. This is important to ensure that you’re not missing any information.

Keep track of the issued credit notes

Creating a single template is an effective way to keep track of all the issued credit notes that are issued by your company. When you’re adding a unique identification number to each credit note, you’ll be able to track them without any hassle.

3 ready-made credit note templates

Why should you choose HighRadius’ ready-made credit note templates?

Now that you know why and when to use a credit note template, the next step is to enter the data into the template and send it to your client.

HighRadius’ Credit App offers credit note templates that are easy to use and share. Here’s how our credit note templates help:

The pre-added company logo establishes professionalism and trust, reinforcing the company’s brand-building effort.
You get to know the right place to add your company’s address and your client’s address.
The date the credit note was issued will be mentioned in the document itself making it easier for your client to keep note of the due date.
A crystal-clear structure of the credit note template makes it easier for you to fill in the blank line items.

For more credit note template options and other features such as credit risk scoring, cash application, and collections worklist prioritization, check out our AR solution suite.

Take a demo to check out the product.

FAQs

1. What is the purpose of a credit note?

The purpose of a credit note is to notify the buyer that a credit amount is being applied to their account.

2. What is an example of a credit note?

If a product is priced at $100 and is incorrectly invoiced at $150, then a credit note rectifies the price of the product, by offering the customer a credit of $50 which they can use during a later purchase.

3. How is a credit note different from an invoice?

An invoice is a bill where all the products or services offered by the seller are itemized. A credit note, on the other hand, is a document that rectifies the misprinted amount in the original invoice.

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