Credit Note

a credit note is a commercial document issued by a seller to a buyer following the creation of the invoice in circumstances where there is a mistake or fault in goods and service delivered by the seller or where contract terms permit a refund, in effect requiring a corrective invoice The seller usually issues a credit note for the same for a lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions.

« Back to Glossary Index