<p><span style="font-size: 14pt;"><strong>Credit Note</strong></span></p>
<p>A credit note is a document issued by a seller to a buyer to notify that credit is being applied to their account. It is also referred to as credit memos. As a seller, I would like to be able to issue a credit note when there&rsquo;s a need to cancel all or part of an invoice for a variety of reasons, including:</p>
<ul>
<li>Changes to an order after an invoice is issued</li>
<li>Goods returned or services rejected</li>
<li>Goods were damaged during shipping</li>
<li>Pricing mistakes on the original invoice</li>
</ul>
<p><strong><span style="font-size: 14pt;">Debit Note</span></strong></p>
<p>A debit note, or a debit memo, is a document issued by a seller to a buyer to notify them of current debt obligations. You&rsquo;ll commonly come across these notes in business-to-business transactions &mdash; for example, one business may supply another with goods or services before an official invoice is sent. The debit note &lsquo;makes note&rsquo; of the transaction for documentation purposes.</p>
<p>Debit notes are also used in business-to-customer transactions, such as when a customer returns goods to a business received on credit. In this case,&nbsp;<em>the buyer</em>&nbsp;issues the debit note to the seller.</p>