Scribd
Upload
88 views2 pages

Understanding Credit Vouchers

A credit voucher is issued to customers in various situations such as returns of defective goods, wrong items, or change of mind, as well as for allowances like damaged goods or price adjustments. It is also used for documenting overpayments and prepayments, along with gift cards and loyalty program credits. Overall, credit vouchers are essential for maintaining accurate accounts and ensuring customer satisfaction.

Uploaded by

shahfaysal547
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
88 views2 pages

Understanding Credit Vouchers

A credit voucher is issued to customers in various situations such as returns of defective goods, wrong items, or change of mind, as well as for allowances like damaged goods or price adjustments. It is also used for documenting overpayments and prepayments, along with gift cards and loyalty program credits. Overall, credit vouchers are essential for maintaining accurate accounts and ensuring customer satisfaction.

Uploaded by

shahfaysal547
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1.

Returns:

●​ Defective goods: If a customer receives a product that is damaged or doesn't work


properly, they might return it for a full refund. A credit voucher would be issued
for the amount of the original purchase.
●​ Wrong item: If a customer receives the wrong product, they might return it for the
correct one. A credit voucher would be issued for the returned item, and a new
invoice would be generated for the correct item.
●​ Change of mind: Even if there's nothing wrong with the product, a customer might
change their mind and return it within the allowed timeframe. A credit voucher
would be issued, often with some conditions like restocking fees.

2. Allowances:

●​ Damaged goods (partial): If goods are slightly damaged but the customer agrees
to keep them, they might receive a partial refund or allowance. A credit voucher
would be issued for the agreed-upon amount.
●​ Price adjustments: If a customer is overcharged or if there was a pricing error, a
credit voucher can be used to adjust the balance.
●​ Discounts or rebates: Sometimes, a customer might be eligible for a discount or
rebate after the original invoice has been issued. A credit voucher can be used to
apply this discount.

3. Overpayments:

●​ Accidental overpayment: If a customer accidentally pays more than they owe, the
excess amount will result in a credit balance on their account. This credit can be
documented with a credit voucher.
●​ Prepayments: Sometimes, customers might prepay for goods or services. This
prepayment can be treated as a credit and documented with a credit voucher until
the goods or services are delivered.

4. Other situations:

●​ Gift cards or store credit: These are essentially credit vouchers that can be used
for future purchases.
●​ Loyalty programs: Some businesses offer rewards programs where customers
earn credits that can be used towards future purchases.
●​ Resolving disputes: If there is a dispute about a billing issue, a credit voucher can
be used to settle the matter and adjust the customer's balance.

In summary, a credit voucher is used whenever a company needs to reduce the amount a
customer owes. This could be due to returns, allowances, overpayments, or other
reasons. It's a crucial document for maintaining accurate accounts receivable and
ensuring customer satisfaction.

You might also like