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Credit note
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5 minutes reading
Last updated: 23 Juli, 2025
By Michelle Bendix Lauritzen
Content
What is a Credit Note?
A credit note — known in Danish as a kreditnota — is a document issued by a seller to a buyer that reduces or cancels a previously issued invoice. In accounting terms, it is a negative invoice: where an invoice records an amount the buyer owes the seller, a credit note records an amount the seller owes the buyer.
Credit notes are a legal document under Danish bookkeeping regulations and must meet the same formal requirements as a standard invoice, including date, CVR number, buyer and seller information, itemised description, and VAT.
When Is a Credit Note Issued?
The most common reasons a credit note is issued include:
- Returned goods — the buyer returns all or part of a delivery
- Overbilling — the original invoice contained a price or quantity error
- Agreed discount — a discount was negotiated after the invoice was issued
- Cancelled order — goods or services were cancelled before delivery
- Quality complaints — goods did not meet the agreed specification
- Partial delivery — only part of a shipment arrived but the full amount was invoiced
- Subscription cancellation — a prepaid period is partially refunded
Process credit notes automatically with Acubiz
Acubiz connects supplier invoices, credit notes, and employee expense claims in a single automated workflow. Incoming credit notes are matched automatically against the original invoice, routed for approval, and posted with the correct VAT correction — so your AP team processes more with less manual work.
VAT Correction: A Compliance Obligation That Is Often Missed
When a supplier sends you a credit note for DKK 10,000 + 25% VAT, you must reverse DKK 2,500 in previously claimed input VAT. This is not optional — it is a legal obligation under the Danish VAT Act (Momsloven § 52a).
In practice, this means:
- The VAT reduction must be reported in the same VAT period as the credit note
- The credit note must contain a VAT specification — a credit note without itemised VAT cannot be used as a VAT document
- If the original invoice and the credit note fall in different VAT periods, you may need to file a correction with Skattestyrelsen
Credit Notes in Expense Management
Credit notes also arise in the context of employee expenses. When an employee books a hotel or airline ticket that is later cancelled, the supplier issues a credit note against the original receipt.
This creates a reconciliation challenge: the original expense has been registered, approved, and possibly reimbursed. The credit note must be matched back against that specific expense claim, and the employee's reimbursement may need to be adjusted.
ERP Integration: How Automated Credit Note Processing Works
In a well-integrated finance setup, a supplier credit note received via e-mail or e-invoicing (OIOUBL/PEPPOL) is:
- Automatically captured — via OCR scanning or direct e-invoice ingestion
- Matched to the original invoice — using invoice number, supplier CVR, amount, or PO reference
- Routed for approval — if above a threshold, it goes to the relevant budget holder
- Posted automatically — to the correct G/L account, cost centre, and VAT code
- Archived — as a bookkeeping document linked to the original invoice
ERP Integration: How Automated Credit Note Processing Works
In a well-integrated finance setup, a supplier credit note received via e-mail or e-invoicing (OIOUBL/PEPPOL) is:
- Automatically captured — via OCR scanning or direct e-invoice ingestion
- Matched to the original invoice — using invoice number, supplier CVR, amount, or PO reference
- Routed for approval — if above a threshold, the credit note goes to the relevant budget holder or AP manager
- Posted automatically — to the correct G/L account, cost centre, and VAT code, in the correct period
- Archived — as a bookkeeping document linked to the original invoice in your document trail
This process eliminates the manual matching step, reduces VAT correction errors, and ensures your AP balance reflects reality at any point in the month — not just after period-end cleanup.
Credit notes are a routine part of finance operations — but at volume, manual processing creates real risk. Acubiz connects supplier invoices, credit notes, and employee expense claims in a single automated workflow, so your AP team spends less time matching documents and more time on the work that matters.
Want to know more?
In Acubiz we have more than 20 years of experience automating AP workflows, including credit note matching, VAT correction, and expense management. Book a demo and see how it works for your finance team.
FAQ
It is best practice, and most ERP systems require it for automated matching. Legally, the credit note must contain all standard invoice fields, but there is no explicit legal requirement to reference the original invoice number — though Skattestyrelsen may request the connection during an audit.
Only if the original invoice had no VAT. If the original invoice included VAT, the credit note must also include the corresponding VAT amount to be valid as a VAT document.
Five years from the end of the financial year in which the credit note was issued, per the Danish Bookkeeping Act (Bogføringsloven).
It must be posted in the current open period. If VAT is involved, you may need to file an adjustment with Skattestyrelsen for the earlier period.