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Accounting

A Credit Note or Credit Memo is a document issued by a seller to a buyer. The seller issues a Credit Note for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions.

A Credit Note is a document used to adjust or rectify errors made in a sales invoice which has already been sent to a customer.

Also a Credit Note can be a document from a bank to a depositor to indicate the depositor's balance is being increased because of an event other than a deposit.

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Debit Note

A Debit Note is issued by a customer to a supplier as a means of formally requesting a credit note. a supplier might also issue a debit note instead of an invoice in order to adjust upwards the amount of an invoice already issued (as if the invoice is recorded in wrong value)

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Proforma Invoice

A Proforma invoice is an invoice provided by a supplier in advance of providing the goods or service. A quotation in the form of an invoice prepared by the seller that details items which would appear on a commercial invoice if an order results.

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