Credit note

A Credit note indicates a return of goods or services. The supplier issues a Credit note to the consumer. It is also known as a Credit memo or Credit memorandum.

Why are Credit notes issued?

A credit note is usually issued for the following reasons:

● Consumer returns
● Error in the original invoice
● Damaged products
● Error in quantity sold and received by the customer.

A Credit note’s contents are as follows:

The supplier’s name, address, and VAT number (if you are a VAT registered business)

● Credit note number
● Date
● Payment or refund terms
● Contact details of the supplier
● Description or reason for issuing a credit note