What is a Credit Note?
Imagine if you buy something from someone, you need to pay for that person. If that person is taking more money from you than what is needed, you need to get that extra bit of payment back. Credit Note is the financial document that will be issued to the payee (you) to inform the amount that has been overcharged and why.
When do we send a Credit Note?
A Credit Note is sent by the seller to the buyer if, the seller has charged more than what was actually required. This extra charge can be because of the tax amount, some of the stuff being returned, or all of the stuff being returned due to some reason.
Now, create your Credit Notes quickly with QuickBooks. QuickBooks helps in creating Credit notes swiftly adhering to all accounting norms:
- Click “New” button from left side navigation frame
- Select “Credit Note” under “Customers”
- Credit Note window appears. Select ‘Customers’ from the drop-down; select ‘Place of Supply’, add ‘Product / Service’ details, date, quantity, tax and amounts (inclusive/exclusive of tax), etc.
- Add a line, attachments as needed. You’re done!