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Yes a credit note cancels the debit note (invoice).
The credit would simply be offset against the debt and you would owe the balance, if any\
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Thank you Alex. Can you address the 2nd part of my question? Which is: After I got the credit note from Hertz in Italy, the same office sent me a `final` demand. Does the Final demand cancel the credit note? Or can i say - "Sorry Hertz, my credit note completely cancels the debt, so please leave me alone?"
You can say the credit note cancels the debt so leave you alone
Does that clarify?