Credit notes, also known as credit memos, are documents issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an earlier invoice.Credit Notes are generally used in, but not limited to, the following scenarios:
Returned Goods: The buyer has returned goods to the seller due to damage, defect, or other reasons.
Overbilling: There was an error in the original invoice, such as overbilling or incorrect pricing.
Discounts or Rebates: The seller wants to offer a discount or rebate after the initial invoice was issued.
Promotional Credits: Credits given for promotional purposes or customer satisfaction.