<p>A credit note is a document that a business issues to its customers. It is used whenever an <a href="https://www.goforma.com/business-resources/how-to-make-send-invoice" target="_blank">invoice</a> needs to be changed and re-issued, such as when a customer changes or cancels an order, or is charged an incorrect amount.<br></p>
Small Business Accountants
What are Credit Notes?
A credit note is a document a UK business issues to cancel or reduce a previously sent sales invoice, for example after a product return, price dispute, or billing error. It reduces the amount owed by the customer and, for VAT-registered businesses, reduces output VAT on the VAT return for the period the credit note is issued. Credit notes should be sequentially numbered and linked to the original invoice.
