What’s on the price adjustment credit note
Extra fields on this template: Original invoice, Invoice date.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Price correction: copy paper, A4, case of 5Billed $48.00, contract price $42.50 | 60 | $5.50 | $330.00 |
| Quarterly volume rebate, 2%Q3 purchases of $8,400.00 | 1 | $168.00 | $168.00 |
| Subtotal | $498.00 | ||
| Sales tax (7%) | $34.86 | ||
| Total credit | $532.86 | ||
Example prices in US dollars. Replace them with your own; in the generator, any currency works.
Show the working
A price adjustment is easiest to accept when the customer can check it. For each line, say what was billed, what the correct price is, and the quantity, and credit the difference. Credit the tax on the difference too, at the original rate. Quote the agreement the right price comes from, such as a contract, a price list or the quote the customer accepted.
Overcharge, discount or rebate?
| Situation | On the credit note |
|---|---|
| Wrong price billed | Billed price, correct price, difference × quantity |
| Discount agreed after the sale | The discount as a line, with the reason |
| Volume rebate | The period, the purchases it’s based on, the rate |
| Undercharge | Not a credit: issue a debit note |
Frequently asked questions
Can I just send a corrected invoice?
If the invoice hasn’t been entered in anyone’s books yet, a replacement may be fine. Once it is in the records, issue a credit note for the difference, which keeps the original invoice intact.
How do I handle a rebate in tax?
A rebate that reduces the price of taxed sales usually reduces the tax on them too, so credit the tax at the original rate. Rules differ by country and state; check with your accountant.
What if I undercharged?
Issue a debit note for the difference, or a new invoice for it, quoting the original invoice.