What must be received if goods have been returned to process a payment adjustment?

When goods are returned, it is important to have a credit note issued as part of the payment adjustment process. A credit note serves as a formal document that acknowledges the return of goods and the corresponding reduction in the amount owed by the buyer to the seller. It details the specifics of the returned goods, such as quantities, descriptions, and the reason for the return.

The credit note effectively cancels out a portion of the original invoice and allows the seller to update their accounts receivable accordingly. It ensures that both parties have a clear record of the transaction, maintaining accurate financial records. Furthermore, it facilitates the adjustment of any future payments that need to be made, reflecting the correct amount owed after the return of goods.

In contrast, while an invoice update could be part of the process, it does not fulfill the same formal role as a credit note when processing returns. A payment request typically pertains to asking for payment rather than addressing returns, and bank confirmation would relate to verifying transactions rather than processing adjustments for returned goods.