A Credit Note is an official document issued to a customer by a supplier when an earlier transaction needs to be cancelled or amended. It may also be issued when there is occurrence of an error in invoicing. It is essentially a legal document that allows the seller to amend an invoice without having to delete it.

A debit note is issued by a buyer to the seller to indicate or request a return of funds due to; incorrect or damaged goods, purchase cancellation, or other specified circumstances.