Invoice vs credit note in plain language
An invoice is a payment request for goods or services you supplied. A credit note (credit memo / avoir / nota di credito) reduces the client’s balance — it is not a new charge.
Estimates and quotes are earlier documents again — compare them in invoice vs estimate vs quote.
When to issue a credit note
Common cases: wrong rate or hours on the original, cancelled line items, goods returned, or a goodwill discount after the invoice was sent. Always point back to the original invoice number.
What to show on the credit PDF
Use a unique credit number, date, both parties’ details, credited lines with amounts, tax adjustments when tax was on the original, total credit, and a one-line reason.
Local names differ (credit note, credit memo, avoir). Change the document title in the editor if your market expects a specific word.
Workflow on this site
Open a simple generator, set the title to Credit Note (or local equivalent), use a CN- number, itemize credited lines, reference the original invoice in Notes, then download PDF for both records.
For brand-new charges, create a fresh invoice with how to create an invoice — do not rewrite history on a paid number.
Disclaimer
Tax treatment of credits depends on your jurisdiction, especially if VAT/GST was already reported. Confirm with your accountant before adjusting filed returns.