Free Quantity Shortage Credit Note Template & Generator
A quantity shortage credit note reconciles four numbers that are rarely the same: what was ordered, what was invoiced, what the driver delivered, and what receiving actually accepted. It credits the gap at the unit price on the original invoice, SKU by SKU, and records why each case was short or refused. The PO, delivery note and invoice numbers stay on the note so a receiving signature from three weeks ago still supports the figure.
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| Description | Qty | Rate | Amount |
|---|---|---|---|
| Short-shipped product units | 12 | $38.00 | $456.00 |
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Use-case checklist
What to include in a quantity shortage credit note
Shortages settle on paperwork, not memory. If the credit does not name the delivery note and the accepted counts, the customer's three-way match keeps failing: their receiving record says 54 cases, your invoice says 60, and a $4,633.20 invoice sits unpaid over $279.00 of can liners. Worse, customers short-pay whatever their receiver wrote down, which is seldom the number you would have credited, and the difference becomes an unreconciled deduction someone chases at year end. Splitting short-shipped units from units that arrived and were then refused protects you too, because the second category is a handling or packing question you may be able to recover on, while the first is simply product that never left your building.
- seller, buyer, PO, shipment, and invoice
- SKU, description, and unit
- ordered, invoiced, delivered, and accepted quantities
- shortage reason and unit-price calculation
- tax adjustment, replacement status, and total credit
Example starting lines
| Description | Qty | Rate |
|---|---|---|
| Short-shipped product units | 12 | $38 |
Complete it cleanly
Use PO, shipment, delivery-note, invoice, item or SKU, invoiced quantity, accepted quantity, shortage, unit price, tax, and disposition. Keep replacement shipments separate from the financial credit.
How to make a quantity shortage credit note in 6 steps
Open the credit note generator
Start from this page so the credit note opens with fields and sample lines already set up for wholesalers, manufacturers, and B2B sellers. No account is needed to create or preview.
Enter both parties
Add your business name, address and contact details, then the customer name and address exactly as they should appear on the record.
Add the quantity shortage lines
Replace each sample line with the real work or goods. Make sure the document shows seller, buyer, PO, shipment, and invoice, SKU, description, and unit, ordered, invoiced, delivered, and accepted quantities.
Check the figures
Totals calculate as you type. Confirm quantities, rates, any tax line and the final total against your own records before you send anything.
Set the reference and dates
Give the credit note a unique number and the correct date so it can be traced later and matched to related documents.
Review and download the PDF
Use PO, shipment, delivery-note, invoice, item or SKU, invoiced quantity, accepted quantity, shortage, unit price, tax, and disposition. Keep replacement shipments separate from the financial credit. Preview is free; a PDF download costs $4.99, or is included with Unlimited.
Worked example
Six cases short on the truck, three more refused at the dock
Kestrel Janitorial Supply invoiced Summit Property Services on September 2, 2026 for a full release of PO 4488. The driver's delivery note DN-3317 came back with two exceptions written on it by Summit's receiver, and Kestrel built the credit from that signed copy rather than from the customer's email.
- Invoice INV-9120 as billed against PO 4488: goods $4,290.00 plus sales tax at an illustrative 8% $343.20
- $4,633.20
- SKU LIN-5540, 55-gal can liners: ordered 60 cases, invoiced 60, delivered 54, accepted 54
- 6 cases short
- Short-shipped liners credited at the invoiced unit price, 6 cases at $46.50
- $279.00
- SKU TWL-CP6, center-pull towel: ordered 24, invoiced 24, delivered 24, accepted 21
- 3 cases refused
- Refused towel credited at the invoiced unit price, 3 cases at $62.50 (water-stained, noted on DN-3317)
- $187.50
- Credited goods subtotal
- $466.50
- Sales tax reversed at the same illustrative 8% on the credited lines only
- $37.32
- Credit note CN-9120-S total (Sep 8, 2026)
- $503.82
- Replacement: 6 cases LIN-5540 released on PO 4488-R and invoiced separately; no replacement towel requested
- Not netted here
- Revised balance due on INV-9120 (54 and 21 cases accepted, $3,823.50 plus $305.88 tax)
- $4,129.38
The trap is netting the replacement cases into the credit so neither total matches anything. Credit the shortage against the original invoice, ship the replacements on their own order, and invoice them separately, so the two documents reconcile independently against receiving. The 8% sales tax is illustrative for this example only; both the rate and which lines sit in the taxable base differ by jurisdiction, so confirm yours with your accountant before you reverse anything.
When this document is the right choice
Use this credit note to document a reduction or reversal against an issued invoice. A credit note changes the amount owed on an earlier invoice without deleting the original record. Reference the original invoice and state the exact reason for the adjustment.
Frequently asked questions
The driver's manifest says 60 cases but receiving accepted 54. Which count do I credit?
Credit against the accepted count, and put both numbers on the note. The manifest records what was loaded, the delivery note records what came off the truck and was signed for, and only the second is evidence the customer can produce. If the difference points at a loading error or a theft in transit, that is a separate investigation with your warehouse or carrier and should not delay the credit that unblocks a $4,633.20 invoice.
Should I credit the shortage or just send the missing cases?
Do both, as two documents. The credit note settles the original invoice so the customer can pay the accepted quantity, and the replacement ships on a new order with its own invoice. Sending replacements without crediting leaves the customer holding an invoice for 60 cases against a receiving record of 54, which is exactly the mismatch their AP system is built to reject, so the original invoice ages while the goods are already on their shelf.
Three cases arrived water-stained and were refused at the dock. Is that a shortage credit or a damage claim?
On the customer's side it is a credit, because they were invoiced for product they do not have. On your side it may also be a claim, against the carrier if the trailer leaked or against the packer if it left you that way. Keep the two separate: credit Summit the $187.50 at the invoiced unit price, and note the refusal reason and the delivery note number so the claim you file later has the same reference on it.
Can one credit note cover shortages on four different invoices?
It is possible, but it usually costs you more time than it saves. Each line has to carry its own invoice number, unit price and tax treatment, and if the customer disputes one line the whole credit sits unapplied. One credit note per invoice keeps the customer's remittance clean and lets each original invoice close on its own. If you do combine them, group the rows by invoice and subtotal each group before the tax line.
Receiving signed the delivery note clean and reported the shortage nine days later. Do I still credit it?
Usually yes, but check what your own terms say about reporting a concealed shortage before you commit, because that window is what the credit either sits inside or deliberately overrides. Ask for the receiver's count sheet and the pallet or seal detail, then set them against your pick ticket and the loaded weight on the BOL, since a scale ticket that matches a full load points somewhere different from one that comes up light. Credit what the evidence supports, write the reason and the report date on the note, and if late reports become routine with one account, agree a shorter reporting window with them in writing instead of relitigating it every delivery.
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