Document background
A Credit Note Policy is essential for organizations operating in Malaysia to maintain consistent and compliant practices in handling financial adjustments and corrections. This document becomes necessary when organizations need to establish standardized procedures for issuing credit notes, ensuring compliance with Malaysian tax regulations, particularly the Sales Tax Act 2018 and Service Tax Act 2018. The policy addresses various scenarios requiring credit notes, such as returns, price adjustments, tax corrections, and billing errors, while incorporating necessary controls and approval mechanisms. It serves as a crucial reference for staff involved in financial operations and helps maintain accurate financial records while preventing unauthorized adjustments.
