Types of debit and credit notes

Question

Accepted Answer

Debit notes are issued when a buyer returns goods or when an invoice is overcharged. Credit notes are issued when a seller returns goods or when an invoice is undercharged.

Debit notes are issued by buyers to sellers when goods are returned or when an invoice is overcharged
Credit notes are issued by sellers to buyers when goods are returned or when an invoice is undercharged
Debit notes reduce the amount payable by the buyer to the seller
Credit notes reduce the amount receivable by the seller from the buyer
Debit and credit notes are used to correct errors in invoices or to record returns
Examples of debit and credit notes include return of damaged goods, overcharged invoices, undercharged invoices, etc.

Types of debit and credit notes

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