Where is a Credit Note used? (Sample Letter and Answers)

Below are answers to the business question; Where is a Credit Note used and sample credit note document.

Sample Credit Note Letter

Below is a sample Credit Note Document;

What is a Credit Note?

A credit Note is a document sent to the customer to inform him of money that a business owes him or money he is supposed to be refunded for goods that he purchased which are not in good condition or were over paid.

Where is a Credit Note Used?

Some of the circumstances under which a credit document can be used include;

• When correcting arithmetic error resulting into overcharge.
• Where the buyer has been charged higher prices than the recommended price.
•  When items included in the invoice were not delivered.
• When a deserved discount is not given. (v) When the buyer has returned some goods.
• When empty crates /packaging for which a deposit had been paid are returned.

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