What is Credit Note Format?

A credit note format is a standardised template to generate credit notes or memos. A properly formatted credit note template is essential for a business as it helps maintain accuracy in accounting records and transparency in financial dealings. With standard credit note formats, organisations can successfully document and communicate changes to their previous invoices.

Contents in Credit Note Format

A credit note format typically includes the following information:

1. Name of the business, address, and GSTIN (goods and services tax identification number) of the supplier
2. Type of document, i.e. credit note
3. Unique serial number (not exceeding 16 characters and may be numeric, alphabetic, alphanumeric, or contain special characters)
4. Date of issue of document
5. The taxable value of supply, rate, tax, and amount of tax credit to the buyer
6. Signature of the supplier or authorised representative

If you’re not a GST-registered business, you can choose the elements to include in the credit memo. GST-registered businesses, however, need to follow the specific guidelines mentioned by the CGST Act.

Credit Note Format Under GST 

The GST guidelines do not specify any specific format for credit notes. However, it did mention the mandatory fields that must be included on every GST-compliant credit note. Here is the list of details that must be included – 

• Name, address and Goods and Service Tax Identification Number (GSTIN) of the supplier; 
• Nature of the document;
• Unique serial number – Unique for a financial year and must contain consecutive serial numbers not exceeding 16 characters 
• Date of issue; 
• Name, Address, GSTIN, or Unique Identity Number of the recipient.
• For an unregistered receiver, the name and address, along with the delivery address, should be included along with the state name and the code.
• Serial number and date of corresponding tax invoice/bill of supply
• Value of taxable goods or services provided by the supplier credited to the recipient and tax amount;
• The signature or digital signature of the authorised representative’s side.

Sample Credit Note Invoice Format

Here is a sample credit note template for your reference. 

Credit Note Format in Excel

You can use MS Excel to create a credit note format. Excel is a versatile tool for efficiently creating detailed and organised credit note templates. Using Excel, you can add separate sections for different fields. One added advantage of credit note templates in Excel is that some data, like the date, total item-wise price, and total bill amount, can be auto-populated using simple Excel formulas. If you want to create a credit note template in Excel, follow the steps mentioned here.

1. Open a new Excel Workbook.
2. Create a table with the required fields like buyer’s name, seller’s name, reference number, date, description, tax, amount, etc.
3. Depending on your business requirement, you can also add any additional fields.
4. Save the credit note as a new file.

Whenever you wish to create a credit note, make a copy of the saved template, enter the details in the empty fields, save it with a different name and use it.

Credit Note Format in Word

You can create credit note templates using MS Word, an affordable and user-friendly tool.Follow the steps mentioned here to create a credit note format in Word. 

1. Open a new document in MS Word.
2. Add tables, text boxes, or other formatting features as available in Word to create a professional credit note format.
3. Add fields and details depending on your business requirement
4. Then, Save the credit note as a new file.

Whenever you wish to create a credit note, make a copy of the saved template, enter the details in the empty fields, save it with a different name and use it.

Credit Note Format in PDF

PDF file format provides a secure way for file sharing. You may not create a note format directly in a PDF unless you have a PDF maker. However, if you have a credit note template in Word or Excel, once you fill it out, you can download the credit note in PDF format. You can share this version with the supplier to make it look more professional. 

How to Create Credit Notes Using myBillBook

Using credit note format in Excel or Word requires you to manually enter every data point. Consequently, there is a higher chance of error. Also, Word/Excel may not auto-populate all the numbers, like calculating taxes, adding discounts, etc. Further, tracking all the credit notes issued in Word or Excel is a manual process.

A better alternative to creating credit notes in Word or Excel is using billing or invoicing software like myBillBook. myBillBook is a cloud-based billing and accounting software that helps small and medium businesses generate invoices within a few clicks. It allows customers to easily make professional credit notes by providing pre-designed themes. 

Unlike the templates provided by Microsoft Office Word and MS Excel, myBillbook has additional features such as auto calculations and customisable invoice templates, making it better suited for organisations seeking to simplify their billing processes. Here is how to create credit notes using mybillBook.

1. Login to myBillBook
2. On the dashboard, click on the ‘Sales’ option
3. Choose ‘Credit Note’ under the ‘Sales’ option
4. Provide the required details, such as the credit note number, issue date, customer details, original invoice reference, reason for credit, item details, quantities, prices, and total credit amount.
5. Once you have entered all the necessary information, you can preview and save credit notes, then download and share the document.

Isn’t it simple and straightforward? You can use our free trial to create various types of invoices, including credit notes. Download myBillBook today and get a 14-day free trial.