Correcting an invoice (Creditnota in Dutch)

Credit Note

We all make mistakes from time to time. Charging too much on an invoice or forgetting to apply a discount — it happens. But no worries! A credit note allows you to correct these administrative errors. Discover when to issue a credit note and what it should include.

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What is a credit note?

A credit note (also called a credit invoice) is issued when you want to reduce or cancel the amount of an invoice that has already been sent.

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When should you issue a credit note?

There are several situations in which a credit note is needed:

• Overcharged amount: If you accidentally charged too much, for example because of an incorrect hourly rate.
• Error on the invoice: If there is a mistake on the invoice, it’s important to correct it with a credit note rather than simply adjusting the original invoice.
• Discount: If a damaged item was delivered or your customer is entitled to a discount that was not applied on the original invoice, you can correct this using a credit note.
• Returned goods: Customers who return products may also receive a credit note.

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What should a credit note include?

A credit note contains the same information as a regular invoice, but with negative amounts. It is important to refer to the original invoice.
Also pay attention to invoice numbering: when issuing a credit note, you continue your existing sequence. For example, if your last invoice number is 202305, the credit note will be 202306. This prevents gaps in your records.

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What if the customer has already paid the invoice?

If the customer has already paid the original invoice, you have two options:

• Refund the amount to the customer.
• Leave the amount as a credit balance. However, customers are often hesitant to accept this, as future purchases are not guaranteed.

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How do you create a credit note?

You create a credit note in the same way as an invoice. For example, you can use your standard Word template. It is even easier with online accounting software.

In Moneybird, creating and sending a credit note works as follows:

1. Open the original invoice you want to credit.
2. Go to “Extra” at the top of the invoice and select “Duplicate to credit invoice”.
3. A new invoice is automatically created based on the original. The invoice number, date and amounts are adjusted automatically.
4. On the right-hand side, you can see which invoice the credit note is based on.
5. Send the credit note to your customer in the same way as a regular invoice.
6. In case you credited the whole amount, and want to issue a new invoice with the right details – you can simply issue a new invoice following your usual workflow.

If you only want to credit part of the invoice, you can adjust the generated credit note accordingly.
It is also possible to create a credit note without duplicating an existing invoice: simply create a new invoice and enter negative amounts (by adding a minus sign). Don’t forget to refer back to the original invoice number being credited in the notes.

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How does a credit note affect VAT returns?

If you have charged and paid VAT on an invoice that is later credited, you must submit a request to the Dutch Tax Authority to reclaim the VAT that was incorrectly paid. You can do that in the next VAT return, as a correction.

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What is the difference between a credit note and a debit note?

A debit note (also called a debit invoice) is sent when too little has been charged. It is an additional invoice that increases the original amount for the delivered goods or services, creating an extra payment obligation for the customer.
A credit note, on the other hand, reduces or cancels the amount of an invoice.

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Summary

A credit note allows you to easily correct a previously issued invoice. Whether it’s due to an overcharge, a forgotten discount, returned goods or a simple mistake, a credit note is the solution.
A credit note must meet the same requirements as a regular invoice, but includes negative amounts. Don’t forget to reference the original invoice. With accounting software, you can create a credit note quickly and keep your records accurate and up to date.

Frequently Asked Questions