Popularly known as a credit memo, a credit note is a commercial business document that the seller issues to the buyer.
It is issued in different cases that include:
Issuing credit notes is important in business accounting because it helps the seller promise the buyer the difference in the amount against the faulty goods.
No, a credit note is not a type of refund. It is a memo issued against the difference of amount in the invoice or the faulty goods.
Yes, a credit note or credit memo is a legal business document.
The seller issues a credit note against the invoice to the buyer.