Glossary definition

What is a credit note?

A credit note is issued to a buyer to indicate debt, typically with reference to a previously issued invoice and/or purchase.

A credit note might be issued to correct a mistake, or if goods are returned or if items fail while under guarantee.

The buyer might be able to use the credit note to offset any outstanding balance or use it for new purchases.

Subscribe to the Sage Advice enewsletter

Join over 500,000 UK readers and get a roundup of our best business advice in your inbox every month.