AR glossary
What is Credit note?
A credit note is a document that reduces what a customer owes, typically for returned goods, a post-sale discount or a billing correction.
Example
You invoiced ₹1,18,000 including GST. ₹23,600 of goods came back damaged, so you issue a credit note and the balance due drops to ₹94,400.
Why it matters
Unapplied credit notes make receivables look bigger than they are, and debtors often refuse to pay until they’re applied. Getting them right avoids pointless disputes.
In Creditouch
Credit notes are logged against the invoices they apply to, so balances, aging and reminders are always net.
See Invoices