Lapasar
Finance & Payments

Credit Note

A credit note is a document a supplier issues to reduce the amount a buyer owes, correcting an overcharge, return or agreed adjustment on a previous invoice.

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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.

Frequently asked questions

What is a credit note?
A credit note is a document a supplier issues to reduce the amount a buyer owes, correcting an overcharge, return or agreed adjustment on a previous invoice.
What is the difference between a credit note and a refund?
A credit note reduces the buyer's outstanding balance and is usually offset against future payments, whereas a refund returns money that has already been paid.

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