A Credit Note (also called a Credit Memo) is an official document issued by a seller to a buyer. It shows that a certain amount has been credited back to the buyer’s account — either fully or partially.
When should you issue a Credit Note?
When you refund a customer for their order (full or partial refund).
When you cancel an order after it was already invoiced.
In countries where refunding money requires official documentation, a Credit Note is legally needed.
Why is a Credit Note important?
It keeps your accounting correct and transparent.
It shows your customer that the refund or cancellation was officially processed.