Credit note

Common card · No. 455739

A credit note or credit memo is a commercial document, utilized in business transactions to indicate a reduction in the amount owed by a customer or owed to a supplier. If the customer returns goods to the seller, the invoice previously issued is cancelled, in part or as a whole, with a credit note. Credit notes act as a source document for the sales return journal. In other words, the credit note is evidence of the reduction in sales. A credit memo, a contraction of the term "credit memorandum", is evidence of a reduction in the amount a buyer owes a seller under an earlier invoice. It can also be a document from a bank to a depositor to indicate the depositor's balance is being in the event other than a deposit, such as the collection by the bank of the depositor's note receivable.

Read on Wikipedia