When customers return goods to the business, a credit note is raised.
What is the meaning of this sentence?
Ask the Tutor ACCA FA
credit note is raised
When the goods were supplied to the customer, an invoice was raised (issued).
If the customer returns the goods then we issue a 'negative' invoice which is called a credit note.
This is explained in the final chapter of our free lectures notes. Our notes and the lectures that work through them are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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