Credit Note

A credit note is issued when goods are returned, an invoice was overstated, pricing was wrong, or a rebate or discount is applied after invoicing. It records a reduction in the buyer's liability and links to the original invoice so accounts stay reconciled. The buyer can offset the credit against future payments or, in some cases, receive a refund.

Accurate credit-note handling keeps accounts payable clean and prevents overpayment. In systems that match invoices to orders and receipts, credit notes are recorded against the relevant transaction, preserving a clear audit trail. Under Malaysia's e-Invoice regime, credit notes are also part of the electronic documentation submitted for tax purposes.