Credit note
A credit note corrects an already issued invoice downwards, for instance on a return, a defect deduction or a rebate; it is a document type of its own with its own number and must not replace the original invoice.
Definition
The reason for the separate number is traceability: a posted invoice may no longer be altered, otherwise the accounts are no longer auditable. Correction therefore happens through a second document that refers to the first.
For VAT the credit note is a reduction in consideration and must be taken into account in the return for the period in which it was issued. Whoever books it only internally remits too much tax.
Where to read it
What the software must be able to do
Check whether the software knows a genuine credit note document referring to the original invoice, whether the amount is correctly offset in open items, and whether VAT is corrected automatically.
Checked Aug 2026
More terms under Invoicing, payment and banking: Advance payment Allowance for doubtful debts Bad debt camt.053 Cancellation invoice Cash discount Certificate of shortfall Creditor Current account Debt enforcement Debtor Default interest Delivery note Dunning eBill Final invoice IBAN Invoice number ISO 20022 / camt Open items pain.001 Part payment Payment term Pro forma invoice QR reference QR-bill QR-IBAN Quotation Receipt Tips TWINT as a payment method Visitor taxes