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Published on July 12, 2026

What is a Credit Note and How to Issue One?

1. What is a Credit Note?

A credit note (or credit memo) is a legal document issued to reduce the amount owed on a previously sent invoice.

2. Common Reasons to Issue Credit

Issue credit notes for billing errors, overcharges, product returns, or goodwill discounts on disputed work.

3. Accounting Compliance

Do not delete or alter sent invoices. Issue a corresponding credit note to keep your accounting audits clean and compliant.

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