CREDIT NOTE AND DEBIT NOTE PART-08
CREDIT NOTE AND DEBIT NOTE
Credit Note:
A credit note is a document issued by a seller to a buyer when there is a reduction in the amount payable by the buyer.
It is often used in cases of sales returns, defective goods, or overbilling.
The credit note serves as a formal acknowledgment of the reduction in the buyer's liability to the seller.
It typically includes details such as the original invoice number, the reason for issuing the credit note, the amount being credited, and any necessary adjustments.
Debit Note:
A debit note is a document issued by a seller to a buyer when there is an increase in the amount payable by the buyer.
It is used in situations such as additional charges, underbilling, or adjustments to the original invoice amount.
The debit note serves as a formal request for the buyer to make additional payment or settle an outstanding amount.
Similar to a credit note, a debit note includes details such as the original invoice number, the reason for issuing the debit note, the additional amount to be paid, and any necessary adjustments.
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