Credit Note
Purpose: A credit note is issued by the seller to the buyer to reduce or eliminate the amount payable. It typically corrects errors in the original invoice or reflects returns, discounts, or adjustments.
Content: It includes the credit note number, date, seller's information, buyer's information, details of the original invoice, reasons for the credit, and the adjusted amount.
Direction: It is sent from the seller to the buyer.
Debit Note
Purpose: A debit note is issued by the seller to the buyer to request additional payment, typically due to underbilling or the need for additional charges.
Content: It includes the debit note number, date, seller's information, buyer's information, details of the original invoice, reasons for the debit, and the additional amount.
Direction: It is sent from the seller to the buyer.