Friday, March 9, 2007

Credit Note

Credit Note is sent to customer by vendor to inform customer that the amount owed has been reduced. The customer account has been credited.

Usually credit note are used in the following situation:

  1. Good returned to vendor
  2. Customer has been billed more than supposed
  3. Commission given to customer
  4. Containers returned to vendor
Credit Note is used by customer as the source for Purchase Return Journal. Credit Note is used by vendor as the source for Sales Return Journal.