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Credit invoice

What is a credit invoice?

A credit invoice is an invoice issued to correct a previous invoice. It is used to correct an erroneous or incorrect invoice or to indicate a refund to the customer. A credit invoice usually has the same format as a regular invoice but with negative amounts. The amount shown on the credit invoice is deducted from the amount of the original invoice. This can happen, for example, when a customer returns a product or service, a price adjustment is made, or an incorrect invoice is corrected.

A credit invoice can also help keep a company’s accounts in order and maintain a balance between accounts payable and accounts receivable. It is essential to ensure that credit invoices are issued correctly and on time to avoid unnecessary administrative problems.

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