According to Quick Books, a credit note must include a header stating it is a credit note, a customer name, the customer's address and a reference number. The body includes an explanation for why the credit note is issued, along with corrected prices. The end of the note includes the subtotal, total and total after taxes.Continue Reading
Quick Books says businesses issue credit notes to correct a previous invoice. When a customer receives an incorrect invoice and pays the full balance reflected on this invoice, a business can credit the customer back for the overpayment or mistaken payment using a credit note. The credit note needs to include all of the information in the original invoice along with the changed balances for record-keeping purposes.
Businesses write credit notes as reverse invoices, according to Microsoft. This means they retroactively take products back in stock or simply reverse an existing invoice if the product remains with the customer. The format of the credit note is not important, as long as businesses state all of the necessary information clearly. Businesses can also add a credit note to online bookkeeping software to keep track of outdated invoices, product stocks, taxes and annual income. The customer must receive a copy of the credit note for his records.Learn more about Credit & Lending