Issued an invoice and now finding ways to refund it or discount the total amount?

A credit note is a crucial business accounting document. 

There are many reasons why a business owner needs to issue a credit note. We shall learn everything step-by-step with today’s blog.

What is a credit note?

A Credit Note is a crucial business document issued by the sellers after an invoice is paid or settled. There are many reasons for issuing a credit note, including damaged product/goods, unmentioned discount, invoice calculation mistake by the seller, unhappy service refund, or order cancellation request after the payment. 

Business accounts are pretty crucial for helping the organization grow. Often, organizations receive a request from the buyer about canceling or complaining about the product/service; the company has to raise a refund request. Here is precisely why a credit note is issued. 

Credit notes are important for settling the difference between the invoices paid and the amount refunded against it. It helps in maintaining accurate books of accounts. 

Are credit notes and credit memos the same?

Nice question! Credit notes and credit memos are both the same. Credit notes are also referred to as credit memos by many businesses. Many times the seller has to return a partial or complete amount to the buyer, for which they issue a credit memo.

Credit note example

Call it a credit note or a credit memo; here is an example of how a credit note looks like. Moon Invoice, online billing software, allows businesses to create and send credit notes. While using our online invoicing software, you get a notification from the software to check whether the client or customer has used the credit note or not. In the below example, you can check how the credit note is mentioned as unused. Once the client uses the credit note, you will get a notification as a ‘Used’ credit note. 

Credit note essentials: registration number, customer details, credit note number, date, total, product and quantity details, unit price,  and total amount.

Difference between a credit and debit note

A debit note or a debit memo is contradictory to what a credit note is. The seller issues a debit note to the buyer for demanding an additional amount. Debit note also holds an essential factor for maintaining accurate books of accounts. It helps the seller to settle for an additional or extra amount from the buyer. 

Need to issue a client refund?

How to make a credit note online?

To issue a credit note online, you need to download an online invoicing software like Moon Invoice. It helps you in automating your business accounting needs with the help of various features. Moon Invoice helps your business create a credit note online with the help of the credit note feature. 

Issuing credit note with Moon Invoice

Moon Invoice helps you create instant credit notes for your customers and clients. Here is a quick step guide for creating credit notes using our online invoicing app.

  1. Login to Moon Invoice App or Software or Website
  2. Click on Credit Notes from the Categories/Features
  3. Click on the ‘+’ sign to make a credit note.
  4. Fill in the details such as customer name, credit note number (automated), currency, date, address, items or product details, task and rate details, total amount, and notes.
  5. Click on save. 

Why Moon Invoice for sending credit notes?

Moon Invoice helps to issue and send credit notes on the go. It has got excellent features to offer your business with smart billing and accounting needs. Nevertheless, Moon Invoice helps businesses issue, create, send, view, download, email, and print credit notes to their customers via a single click! The software has an exclusive feature that helps businesses to know whether the credit notes are used or unused. 

Visit the Moon Invoice website for more details on how your business can issue a credit note online. Get rolled on our seven days free trial offer for issuing credit notes to your buyers or customers.


A buyer can only issue a debit note to the seller. Only a seller can issue a credit note to their buyers.
Yes, credit notes are considered an official or legal document in business accounting.
Yes, credit notes are issued online with the help of online invoicing software.