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Credit Notes Explained

A credit note (German: Stornorechnung) is a document that formally reverses a previously issued invoice. This page explains what credit notes are, how they differ from similar document types, the legal requirements behind them, and how docs101 implements them in a ZUGFeRD-compliant way.

What Is a Credit Note?​

A credit note cancels an existing, finalized invoice in its entirety. It creates a new document with the same line items but negative amounts, effectively reversing the financial impact of the original invoice. The original invoice remains in the system with a Canceled status — it is never deleted.

When do you need a credit note?

  • An invoice was sent to the wrong customer
  • The invoiced amounts, VAT rates, or positions were incorrect
  • The underlying transaction was canceled after the invoice was finalized
  • A duplicate invoice was issued by mistake
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Credit notes are only required for finalized invoices (status Open, Sent, or Paid). Draft invoices can be canceled directly without a credit note because they have not yet been assigned a legally binding invoice number.

Distinguishing Similar Terms​

Three document types are frequently confused in invoicing. They serve different purposes and have different legal implications:

Credit Note (Stornorechnung)Corrective Invoice (Rechnungskorrektur)Self-billed Credit Note (Gutschrift)
PurposeFully reverses an existing invoiceCorrects specific errors in an existing invoiceBuyer issues an invoice on behalf of the seller
Initiated bySellerSellerBuyer
AmountsAll positions negated (negative total)Only corrected positions listedPositive amounts (represents payment to seller)
ReferenceMust reference the original invoice numberMust reference the original invoice numberReferences the purchase order or contract
Common use caseWrong customer, canceled transactionMinor error in unit price or quantityCommission settlements, consignment
docs101 supportYes (full cancellation)Not yet supportedNot applicable
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In everyday German, "Gutschrift" is often used colloquially to mean a credit note or refund. In tax law, however, a Gutschrift (§ 14 Abs. 2 Satz 2 UStG) specifically refers to a self-billed invoice where the buyer creates the document. Using the correct terminology avoids confusion with your accountant and tax authority.

Mandatory Invoice Fields (§ 14 UStG)​

Credit notes are invoices in the legal sense. All mandatory fields required by § 14 Abs. 4 UStG for regular invoices also apply to credit notes:

  • Seller and buyer name and address
  • Tax identification number or VAT ID
  • Invoice date and credit note number
  • Description of goods or services
  • Net amount, VAT rate, and VAT amount
  • Reference to the original invoice number — this is an additional requirement specific to credit notes

Archiving and Numbering (GoBD)​

Under the GoBD (Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern, Aufzeichnungen und Unterlagen in elektronischer Form), credit notes are subject to the same archiving requirements as invoices:

  • Credit notes must be stored for 10 years
  • The number sequence must be gap-free and traceable
  • Both the original invoice and the credit note must be retained
Separate vs. Shared Number Sequence

German tax law (GoBD) permits both a shared number sequence for invoices and credit notes, and separate sequences. docs101 uses a separate number sequence for credit notes to provide clear visual distinction between invoices and cancellations. The default prefix is SR (for Stornorechnung).

How docs101 Implements Credit Notes​

docs101 implements credit notes as a full cancellation — every position from the original invoice is reversed 1:1.

Key implementation details:

  • Separate number sequence — Credit notes have their own configurable numbering with prefix, padding, suffix, and reset frequency. See Numbering for configuration.
  • Full cancellation — All line items from the original invoice are copied with negated amounts. No partial cancellations.
  • Negative amounts in PDF — The credit note PDF displays negative unit prices, negative line totals, and a negative invoice total.
  • Positive amounts in ZUGFeRD XML — Per the EN 16931 convention, amounts in the structured XML data are expressed as positive values. The document type code (381) signals that these amounts represent a credit, not a charge.
  • Bidirectional linking — The original invoice links to its credit note, and the credit note references the original invoice number. Both links are visible in the invoice detail view.
  • No impact on invoice limits — Credit notes do not count against your monthly invoice quota on any plan.

ZUGFeRD Compatibility​

docs101 credit notes are fully compliant with the ZUGFeRD 2.x / Factur-X standard and pass KOSiT validation.

Technical details:

FieldValueStandard
Document Type Code381 (Credit Note)UNTDID 1001
Preceding Invoice Reference (BG-3)Original invoice number + issue dateEN 16931
Line item amountsPositive valuesEN 16931 convention for type 381
VAT category codesSame as original invoiceEN 16931
ValidationKOSiT ValidatorXRechnung / EN 16931 rules

The Preceding Invoice Reference (Business Group BG-3) contains the original invoice number and its issue date, establishing the formal link between the credit note and the canceled invoice.