Invoicing glossary

Credit note

A credit note is a document that reduces the amount a customer owes, used to correct or refund part or all of an invoice.

Credit note: a clear definition

If you overcharged, a client returned something, or you agreed a discount after invoicing, you issue a credit note rather than editing the original invoice — that keeps your records accurate and auditable. The credit can be refunded or applied against a future invoice.

How Invco helps

Invco is an AI invoicing assistant that handles credit note and the rest of your billing for you. Design a custom invoice template, then let Claude create and send invoices on it in plain English — with subtotals, tax, and totals calculated automatically and every invoice tracked from sent to paid. Start free with one company.

  • Related terms: Discount, Tax invoice

Frequently asked questions

What is credit note?

A credit note is a document that reduces the amount a customer owes, used to correct or refund part or all of an invoice.

What is discount?

A discount is a reduction applied to an invoice, either as a percentage or a fixed amount off the subtotal.

Invoice the easy way with Invco

Let an AI assistant create and send your invoices on a template that looks like your brand. Start free with one company — no credit card required.

Get started — it's free