What is Credit Note?
Business Terms
Explained Simply
Credit notes effectively reverse part or all of an invoice. In South Africa, a credit note must reference the original invoice and include the same tax information. For VAT purposes, a credit note adjusts the output VAT previously charged. Credit notes are common in situations like returns, damaged goods, billing errors, or negotiated discounts. In Accounter, credit notes automatically adjust the customer's balance and VAT records.
Related Terms
- InvoiceAn invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided, quantities, prices, and payment terms.
- Accounts ReceivableAccounts receivable (also called debtors) is the money owed to a business by its customers for goods or services that have been delivered but not yet paid for.