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Download a free credit memo template for Excel or as a CSV, with a filled example, or print a blank one. It references the original invoice, states the reason for the credit, lists credited items with automatic totals including tax, and says how the credit will be applied.
Updated · Aequo editorial team
The Excel file has two tabs: a blank credit memo and a filled example crediting returned goods and a price correction.
Fields: seller, customer, credit memo number and date, original invoice number and date, customer PO, reason, eight credit lines, subtotal, tax credited, total credit and how the credit is applied. Opens in Excel, Google Sheets (File, Import), Numbers and LibreOffice.
Print it to fill in by hand or save a blank PDF.
From
Credit memo
Credit to
Credit memo number
Credit memo date
Original invoice number and date
Customer PO number
Reason for credit
| Description | Qty | Unit price | Credit amount |
|---|---|---|---|
How this credit will be applied
Credit memo template from Aequo (free to use and adapt)
Give it its own number, tie it to the original invoice, explain why, list what is credited and say how it will be applied.
The example credits $1,050.00 of goods plus $84.00 tax, a total credit of $1,134.00 against invoice INV-2147.
On the buyer's side, AP records this as a vendor credit against the supplier and applies it to INV-2147 or the next payment. If the supplier statement still shows the full invoice, the credit has not been applied; see vendor statement reconciliation.
Aequo AP
Aequo AP captures supplier credit memos the same way as invoices. A credit memo whose lines net to a credit syncs to QuickBooks Online as a vendor credit instead of a bill, and one that mixes charges and credits is held for review instead of syncing.
Aequo AP is live with QuickBooks Online, Xero, FreshBooks and Zoho Books. Oracle NetSuite, Sage Intacct and Microsoft Dynamics 365 Business Central are in early access.
A credit memo (credit memorandum) is a document a seller issues to reduce what a customer owes, usually because goods were returned or damaged, the customer was overcharged, or a discount was agreed after invoicing. It references the original invoice and either reduces that invoice, sits on the account as a credit, or is refunded.
No. A credit memo reduces the balance owed; a refund sends money back. A credit memo often leads to a refund when the invoice was already paid and the customer asks for the money, but it can also be applied to the next invoice instead.
A credit memo reduces what the customer owes. A debit memo increases it, for example when an invoice was undercharged or freight was left off. A buyer can also issue a debit memo to a supplier to record a deduction it is taking, such as for short-shipped goods.
Yes. "Credit note" is the usual term in the UK, Australia and New Zealand; "credit memo" is more common in the US. Both reduce the amount owed on an earlier invoice. Where VAT or GST applies, the credit note should also show the tax being reversed.
As the seller, select + New, then Credit memo, choose the customer, add the products or services being credited, and save. QuickBooks applies it to the customer's open invoices automatically unless you turn that off. As the buyer recording a credit from a supplier, use + New, then Vendor credit, and apply it when you pay that vendor's bills.
Match it to the original invoice, check the credited quantities and prices, and record it as a vendor credit rather than a negative bill. Apply it to the next payment or to the open invoice it relates to, and confirm the vendor statement shows the same balance. Unapplied vendor credits are a common source of overpayment.