Create professional credit notes for returns, refunds, and adjustments — print or download as PDF
Tax on the credited amount will be reversed automatically.
Fill in the details and click Generate Credit Note, or click a quick-start preset above.
A credit note (also called a credit memo) is a document issued by a seller to a buyer reducing the amount owed on a previous invoice. It is the formal way to record a partial or full reversal of a sale — whether due to returned goods, pricing mistakes, damaged shipments, or agreed discounts.
For ecommerce sellers, credit notes are essential for maintaining clean financial records. When a customer returns products purchased through your Shopee, Lazada, Amazon, or Shopify store, issuing a proper credit note ensures your books, tax filings, and customer accounts all stay accurate.
Credit notes are used in a variety of situations across ecommerce and wholesale businesses:
| Field | Why It Matters |
|---|---|
| Credit note number | Unique sequential reference — required for audit trails and tax compliance |
| Date of issue | Determines which accounting period the credit applies to |
| Original invoice reference | Links the credit to the specific transaction being adjusted — critical for reconciliation |
| Seller and buyer details | Identifies both parties — required for GST/VAT compliance in most countries |
| Items being credited | Exact descriptions, quantities, and unit prices — must match the original invoice |
| Reason for credit | Documents why the credit was issued — important for dispute resolution and audits |
| Tax adjustment | If the original invoice included GST/VAT, the credit note must reverse the corresponding tax amount |
| Total credit amount | The net amount being credited to the buyer's account |
| Document | Issued By | Purpose | Effect |
|---|---|---|---|
| Credit Note | Seller | Reduce amount owed by the buyer | Buyer owes less, or receives a refund |
| Debit Note | Buyer | Formally request a credit for returned/damaged goods | Triggers the seller to issue a credit note |
| Refund | Seller | Return money directly to the buyer | Cash/bank transfer back to buyer |
| Commercial Invoice | Seller | Bill for goods shipped | Buyer owes money |
Key difference: a credit note reduces the buyer's account balance (applied against future invoices), while a refund returns actual money. Many businesses issue a credit note first and then process the refund separately.
If you sell on multiple marketplaces, managing credit notes can get complicated quickly. Each platform has its own return and refund process:
Using a multichannel management tool like OneCart helps you track orders across all platforms from one dashboard, making it easier to identify which returns need credit notes and reconcile your accounts.
In Singapore and most countries, if the original sale included GST or VAT, the credit note must also account for the tax reversal. For example:
This ensures your GST returns are accurate. Our generator automatically calculates the tax adjustment based on the rate you enter.
No. A credit note is a document that reduces the amount a buyer owes — it can be applied against future purchases. A refund is the actual return of money to the buyer. Many businesses issue a credit note first, then process the refund as a separate transaction. In some cases, the buyer may prefer to keep the credit on account for future orders.
Yes. Credit notes should have a unique sequential number for your records. Most tax authorities (including IRAS in Singapore) require credit notes to be numbered sequentially so they can be traced during audits. Use a format like CN-2026-001 to keep them separate from your invoice numbering.
Absolutely. If only some items from an invoice are being returned or adjusted, you can issue a credit note for just those items. The key is that the items, quantities, and prices on the credit note must match the original invoice exactly for the portion being credited.
There is no universal deadline, but best practice is to issue credit notes within 30 days of the event that triggered them (return, complaint, or error discovery). For GST/VAT purposes, the credit note should be issued in the same tax period as the adjustment, if possible, to avoid complications in your tax returns.
Selling on Shopee, Lazada, Amazon, and your own store? OneCart lets you manage orders, returns, and inventory across all your channels from one dashboard — so your credit notes always match your actual stock movements.
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