Credit Note
Invoice TypesA document issued by a seller to reduce or cancel the amount owed by a buyer.
Detailed Explanation
Examples
- A credit note issued for returned defective merchandise
- A seller issues a credit note to correct an overcharged invoice
Quick Q&A
What is Credit Note?
A document issued by a seller to reduce or cancel the amount owed by a buyer.
What does "Credit Note" mean?
A credit note (also called credit memo) is issued when a seller needs to reduce the amount a customer owes. Common reasons include returned goods, pricing errors, damaged products, or service issues. The credit note references the original invoice and specifies the amount to be credited back to the customer's account. This can be used as credit toward future purchases or refunded directly. Credit notes are essential for maintaining accurate financial records and customer relationships.
When is Credit Note used?
A credit note issued for returned defective merchandise ; A seller issues a credit note to correct an overcharged invoice