Free Therapist Credit Note Template
Issue credit notes for therapy session refunds, prepaid package adjustments, and billing corrections. Free PDF, no signup.
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When does a therapist issue a credit note?
A therapist issues a credit note when a prepaid block is unused or a session length is billed wrong, such as remaining sessions of a block or a short session charged as a long one. The note references the original invoice, names the correction, and reduces what the client owes.
Typical line items
- Original invoice number and date
- Unused sessions credit, five of ten prepaid block
- Duration correction, 50-minute session billed as 90
- Reason for the credit
- Credited amount
- Adjusted balance due
- Tax adjusted accordingly
How the work is charged
Credit unused sessions at the per-session rate from the original invoice for the appointments not held. A duration error is credited at the difference between the length billed and the length provided.
Payment terms and deposits
Refund the credit to the original payment method or apply it to the account balance, quoting the original invoice number. State the revised balance after the adjustment.
Tax and compliance
If the original invoice charged sales tax or VAT, the credit note generally reverses that tax in proportion to the amount credited. Health services can be taxed differently by jurisdiction, so confirm what applies to your practice.
Frequently asked questions
A client ended treatment abruptly and is requesting a refund for prepaid sessions. Am I obliged to issue it?
This depends on your written agreement with the client. If your contract specifies that prepaid sessions are non-refundable after the block is started, you are not legally obliged to issue a refund. However, professional ethics often favour refunding unused sessions on request. If you do refund, issue a credit note to document it.
How do I handle confidentiality on a credit note for therapy services?
Use a client reference number instead of a full name if you have confidentiality concerns, especially for clients in sensitive situations. The credit note needs to be traceable in your own records but does not need to include clinical details. Descriptions like 'prepaid session refund' are sufficient.
If a client overpays by bank transfer, do I need a credit note before sending the refund back?
Yes. Issue a credit note first to reduce the outstanding balance to zero on your invoice, then process the refund. This keeps your accounts accurate. Without the credit note, your records show the overpayment as income, which creates a discrepancy at the end of your financial year.
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Read the complete credit note guide to see when to issue one and how it adjusts an invoice already sent.
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