Professional Services
Credit Note Issued — Fee Reduction Agreed with Client
Issuing a credit note when the firm agrees to reduce fees following a client dispute over service quality.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Professional Fee Revenue (Reversal) | Revenue (−) | 2,000.00 | - |
| VAT Output Tax Payable (VAT Reversed) | Liability (−) | 320.00 | - |
| Accounts Receivable (Credit Applied) | Asset (−) | - | 2,320.00 |
💡 Accountant's Note
A credit note reduces revenue and VAT in the period it is issued. If the original invoice was in a prior period, the credit is recognized in the current period — not a prior-period restatement unless material. VAT on the credit note is also reversed.
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