Credit/Debit Note

Credit Note:

What is a Credit Note?

A form or letter sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account. It is also called as credit memo.
A credit note is issued in various situations to correct a mistake, such as when

1. an invoice amount is overstated,
2. correct discount rate is not applied,
3. goods spoil within guaranty period, or
4. they do not meet the buyer's specifications and are returned. Also called credit memo.

To issue a Credit Note, Click Income -> Customer Advances, Click Create New

Once all the details are entered, Click Save

Debit Note:

A form or letter issued by a seller to advise the amount owed by the buyer. An invoice is a type of debit note. It is also called debit memo.

To issue Debit Note, Click Expenses -> Vendor Advances, Click Create New

Once all the details are entered, Click Save