Credit note
A credit note is a document issued to a customer to acknowledge a reduction in the amount owed, typically due to a refund or adjustment.
A credit note is a formal document that reduces the amount a customer owes, issued when there is an overpayment, a billing error, or a refund. It can be applied to a future invoice or paid out directly.
Example: A customer was overbilled by $200 last month. The vendor issues a $200 credit note, which is automatically applied to the next invoice.
