Credit Note

Discussion in 'Payment Processing' started by Devana, Oct 6, 2009.

  1. #1
    How should a credit note be set up? Is it almost like a "reverse invoice" in some ways?
     
    Devana, Oct 6, 2009 IP
  2. TomR

    TomR Peon

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    #2
    You will need to explain what you mean by a credit note.

    Tom
     
    TomR, Oct 6, 2009 IP
  3. Devana

    Devana Well-Known Member

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    #3
    With credit note I mean something to give to customers who have paid too much for a service and would like a "credit note" which can be used next time they use my services.
    Hope that was a good enough explaination :)
     
    Devana, Oct 6, 2009 IP
  4. TomR

    TomR Peon

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    #4
    Why don't you just give them a refund?

    Are these customers that you will give a piece of paper? If so, then yes it is similar to a reverse invoice, I have always seen the term Credit Memo used. And they looked very much like an invoice but they were titled as Credit Memo instead.
     
    TomR, Oct 6, 2009 IP
  5. Devana

    Devana Well-Known Member

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    #5
    Thanks for the info regarding Credit Memo. I would be happy to give them a refund, but they prefered a credit note because it's only about €5 and it has to be refunded via Bank Wire and they won't pay the fees.
    So I'll issue a credit memo as you stated, just wanted to make sure it was sort of the same as an invoice, only some what reverse.
     
    Devana, Oct 6, 2009 IP
  6. SkyisLimit

    SkyisLimit Well-Known Member

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    #6
    A credit note is a monetary instrument issued by a seller that allows a buyer to purchase an item or service from that seller on a future date; I.e A gift card or store card credit. Credit notes may be issued by a seller as a goodwill gesture to a buyer who wishes to return previously purchased merchandise (instead of cash repayment) in circumstances where the original sales agreement did not include an explicit refund policy for returned items. In such circumstances, a credit note of value equal to the price of the returned item is usually issued allowing the buyer to exchange his purchase for other items available with the sale.

    A Credit Note or Credit Memo can also be used to adjust or rectify errors made in a sales invoice which has already been processed and sent to a customer. If you have already sent an invoice to a customer but now need to provide a credit for that invoice, you would send them a Credit Note or Credit Memo. You can think of a credit note as a "negative invoice."

    A Credit Note can also be raised for returned goods. After the sale, if the customer is not happy with the goods for various reasons like damage, expired he would return the goods. This transaction has to be reversed for accounting purposes and a special type called credit note can be used.


    insert your
    Company Name
    and Address Insert your COMPANY LOGO here

    To use your company stationery, delete the header and footer.


    CREDIT NOTE
    To : Date :
    Address : Vat Number :
    Vat Invoice Number :
    Credit Note Number :
    Attention : Your Order Number :

    DESCRIPTION

    Description Quantity Unit Price Amount Credited













    Total
    VAT @ _____ %
    Total Credit Due

    Authorised By:

    Name : Signature : Date :
     
    SkyisLimit, Oct 6, 2009 IP
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  7. Devana

    Devana Well-Known Member

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    #7
    Thanks SkyisLimit! :) Very helpful and hopefully they will be very happy with how I set it up.
     
    Devana, Oct 6, 2009 IP