Credit Note
A document reducing or cancelling an amount a customer owes, issued to correct an invoice, allow a return or settle a dispute.
What it is
A credit note is effectively a negative invoice. It reduces the balance a customer owes, whether to fix an overcharge, account for returned goods, or resolve a billing dispute. The note references the original invoice and is recorded against the account so the ledger stays accurate.
Using them properly
Credit notes should be issued promptly and with a clear reason, because unexplained credits invite confusion at reconciliation. They also adjust GST, so accuracy matters for your activity statement. Raise and track credit notes alongside invoices in Merion invoicing to keep balances clean.
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