Credit Note

Contrary with debit note, credit note is reverse form debit note. To make easy in understanding of credit note, I will give a sample in business nature.

A buyer send a package that containing some buttons. In agreement between buyer and shipper stated that all accessories and the courier fee are have to be covered by shipper. But, the fact that buyer provide the buttons and send the buttons to shipper by using a courier under buyer's account. Of course, all charges including buttons and its courier fee will have to return back to buyer by shipper.

In this case, shipper as a manufacturer or beneficiary party will issue a credit note. This credit note as notice that shipper will pay some amount as reimbursement to buyer. 

In issuing a debit note, we'll need the following information:

1. Beneficiary name and address. 

2. Beneficiary bank details.

3. Destination of the payment.

4. Credit note number.

5. Date of issue of credit note .

6. Description.

7. Total amount.

8. Term of payment.

Sometimes a credit note stating that beneficiary agree to pay the amount of credit note within a period of time, such as, 30 days after issuing date of the credit note.Usually, beneficiary creates a credit note with letter head inserted on.