Credit Note Example: Returned Goods and Price Fix

About this example

This example is the credit note a commercial furniture dealer sends a law firm three days after delivering its new office. Two task chairs were damaged in transit and refused at the dock, and the firm's accounts payable team found 18 conference chairs invoiced at list price instead of the agreed project price. One credit note fixes both against the original invoice.

A credit note has to leave no doubt about what it changes, so this one names the invoice it credits and the delivery note and sales order behind it, lists each credited line with its reason and evidence, and returns the sales tax on the credited amount, split by Illinois, Cook County, Chicago and RTA rates. A reconciliation shows the invoice total, the deposit, the balance before the credit and the new balance to pay, with the bank details. A timeline, a price comparison, a checklist for the customer's accounts payable team and plain answers to common questions make it easy to record correctly. It continues the story of the office furniture delivery note example.

Who it is for

Accounts receivable teams, wholesalers and dealers who need to credit returned or refused goods, or correct an invoicing error, without issuing a new invoice.