Invoicing terms

Credit note

A document that reduces what a customer owes after an invoice — for returns, overcharges or corrections.

A credit note (or credit memo) reduces the amount a customer owes after an invoice has already been issued. It is used for returns, overcharges, post-sale discounts, or to correct a billing error.

A credit note references the original invoice number and is recorded as a negative entry against it, so your books and the customer's stay reconciled.

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