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Discussion > Accounts > Others >

Definition of Debit / Credit Note

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Accountant

[ Scorecard : 55]
Posted On 24 June 2009 at 13:37 Report Abuse

Please tell me the actual definition.

Thanks & Regards


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RAKESH
Almost CA

[ Scorecard : 2183]
Posted On 24 June 2009 at 14:09

When there are purchase return we inform the party to debit our account and a debit note is prepared and when sales return are there we make a credit note .




Member (Account Deleted)

[ Scorecard : 13290]
Posted On 24 June 2009 at 14:41

Credit Note, Debit Note 


 Credit Note

Issuing a credit note is almost the reversal of issuing an invoice. The customer must receive a copy in order to repay any VAT claimed, and you can recover any VAT paid. Credit notes, as with invoices, must have a sequential numbering system.

Debit or credit notes to be raised by one party and received by the other within one month of being discovered or agreed: further, in the ''details' section of the note, a reference to the reason for the note ('damaged goods', 'not delivered/received') the invoice number and date (see section 7. HM Customs & Excise 'The VAT Guide' for full details).

Debit Note

The answer to most of these problems is to have a simple, effective and efficient system for customers to inform you of the issue at hand. For instance: if your customer gets a short delivery or goods are damaged in transit or the customer no longer requires some part of your goods/service, the customer (with your carefully considered authority) can issue a debit note to you for the amount in 'dispute'.

For example:

Invoiced Amount Rs 300.00
Customer sends to you  
Debit Note for damaged goods Rs. 30.00
Cheque for Rs.  270.00

 


 
The original invoice remains the same: which ensures there is no delay due to the customer notifying you of the damage, and you then having to send either a credit note or a new invoice, prior to payment. Or you having received the £270.00 cheque and trying to find out why it is £30.00 short of the invoiced amount.

 

You may encounter a customer who insists on the use of debit notes. If used sensibly the debit note is a great advantage to both parties.

 



Total thanks : 1 times



vishal
DMO

[ Scorecard : 30]
Posted On 01 October 2009 at 12:36

I want to know in the case of issueing Credit note, could we get VAT rebate.

 

 




UMESH
ACCOUNTANT

[ Scorecard : 38]
Posted On 13 September 2013 at 12:03

Thanks for giving about Credit note




Neelima
Admin Cum Accountant

[ Scorecard : 21]
Posted On 27 November 2013 at 12:05

i need notes of debit note and credit


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