## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-fr/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# When do I need to use a credit note?

In Zoho Books, credits represent money owed to the customer, which can be tracked in the form of a credit note.

**Scenario:** Let’s say you run a small electronics store and Patricia is a customer. Now, Patricia returns a faulty gadget that she purchased from your store last week. The transaction is void, and you owe her a refund. Instead of immediately giving her cash, you decide to keep track of this debt. You create a credit note for the refunded amount and apply it to Patricia’s next purchase. This way, she need not wait for a refund, and can enhance your goodwill with your customer. Learn more about [Credit Notes](https://www.zoho.com/books/help/credit-note/#toc_2).

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