What a credit note is, and when you get one instead of a refund

A credit note is a document that cancels or reduces an invoice already issued, in whole or in part. It exists because an issued invoice is not rewritten: it is corrected with another document. It is not money. It is the paper accounting needs to explain why the amount of an invoice stopped being due.

Credit note, account credit and refund

The three are easily mixed up and are not the same:

What it is What changes What it is for
Credit note A document that corrects an invoice. For accounting and tax: the invoice stops counting, in whole or in part.
Account credit A balance in your favour on the account. It is deducted from future invoices. See renewing and changing your billing cycle, and saved payment methods.
Refund Money that goes back to you, the way it came. When the service does not apply. See refunds and cancellations.

One case may call for one, two or all three. You paid twice: it can stay as credit or come back as a refund. The invoice had the wrong name: you need a correct document. The service does not apply: a refund, and the matching document.

When it makes sense to ask

1 Before paying: if the invoice has the wrong name, company or tax number, do not pay it. Write to us with the number and the right details, and we sort it out before it is settled. It is the simplest route. See your invoice: billing details, tax and receipts.
2 After paying: correcting takes more work and is not always possible. Tell us what is wrong and what your accounting needs.
3 If you were charged too much: tell us the amount charged and what you expected, so we can see whether the answer is credit, a refund or both. See paying twice or paying the wrong invoice.
4 Ask about the document: say plainly, in the same message, what your accounting needs, on top of the money.
A credit note does not give money back. Whoever receives one expects a refund that does not come, and whoever does not receive one is left with an invoice accounting still sees as due. Always ask for the two things separately: the document and, if it applies, the money.
Say what your accounting requires. Tax rules vary from country to country and from company to company. What is issued, and what it is called, depends on the case and on the rule that applies. Ask your accountant what is needed and put it in the request. See what support covers in the Support Policy.

Need to correct an invoice, or a document for your accounting? Send us the invoice number and what is wrong.

Open a support ticket

SEE ALSO

Your invoice: billing details, tax and receipts

Refunds and cancellations: what comes back, when, and what does not

The amount on my invoice looks wrong: what to check before you write to us

What stops working if you do not pay

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