Okuzeka
Accounting & Tax vocabulary · Invoices & Payments

Credit note

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, credit note means: A document a seller issues to reduce or cancel an amount a customer owes, for example after returned goods, a pricing error or a discount.

In Turkish: alacak dekontu, iade faturası, fiyat farkı faturası

How it is used

Called a credit memo in the US. A credit note is issued and then applied against an invoice. Accountants match credit notes with the original invoices when reconciling accounts.

Example sentences

  1. We'll issue a credit note for the five damaged boxes.

  2. The customer deducted the credit note from their last payment.

Common collocations

  • issue a credit note
  • credit memo
  • apply a credit note
  • debit note
  • invoiceA document a seller sends to a buyer listing the goods or services supplied, the amount due, any VAT and the payment terms.
  • accounts receivableMoney that customers owe a company for goods or services it has already delivered on credit, and also the team that collects those payments.
  • VATValue added tax: a tax on the sale of most goods and services, collected at each stage of the supply chain and finally paid by the end consumer.
  • reconcileTo compare two sets of records, such as the ledger and a bank statement, to make sure they agree, and to find and explain any differences.

More terms: Invoices & Payments

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This page explains English vocabulary for learners. It is not financial advice.