What is credit memo??When is it used?

Question

Accepted Answer

A credit memo is a document issued by a seller to a buyer, indicating a reduction in the amount owed due to returns, discounts, or other reasons.

A credit memo is used to correct errors in invoices or to provide refunds to customers.
It is typically issued when goods are returned by the customer or when there is a pricing discrepancy.
Credit memos can also be used to adjust the amount owed by a customer for future purchases.
They are important for maintaining accurate financial records and ensuring customer satisfaction.
Examples of credit memo usage include issuing a credit for damaged goods, granting a discount for late delivery, or correcting an overcharge.

Accepted Answer

It is the type of invoice transaction which is used to gate payment revers back from vendor.

Accepted Answer

Credit memo is reduction of receivable amount paid to customer.IF THE PRICE IS TOO HIGH..

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