What is a credit note? Please provide an example.

Question

Accepted Answer

A credit note is a document issued by a seller to a buyer, reducing the amount owed by the buyer to the seller.

A credit note is used to correct errors in invoices or to provide refunds to customers.
It is typically issued when goods are returned by the buyer or when there is a price adjustment.
The credit note includes details such as the original invoice number, the reason for the credit, and the amount being credited.
For example, if a customer returns a defective product and requests a refund, a credit note will be issued to reduce the customer's outstanding balance.
Another example is when a seller realizes that they have overcharged a customer, they can issue a credit note to adjust the price and reduce the amount owed.

Accepted Answer

document voucher given by a party to other party stating thae other party account is credited in the books of send. Return Entrys Under Credit Note

Accepted Answer

credit note is a commercial document issued by a seller to a buyer. is evidence of a reduction in the amount that a buyer owes a seller under the terms of an earlier invoice. credit note issue rate difference, quality difference & sales order terms and conditions related issues

What is a credit note? Please provide an example.

Asahi India Glass Accountant and Store Incharge interview questions & answers

Popular interview questions of Accountant and Store Incharge