Purpose of Debit Note & Credit Note

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Debit notes and credit notes are used to make adjustments after an invoice has been issued. A debit note is issued to increase the balance owed by a debtor, while a credit note is used to decrease it, typically when an invoice was initially raised at too high a rate.

abhijit majumder

abhijit majumder (Querist)
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28 March 2022 To
The experts
Can any one clarify what is actual purpose of Debit Note & Credit Note?

Regard
Abhijit

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 March 2022 Any adjustments after issue of invoice debit note credit note issued.

CA Puja Sharma

CA Puja Sharma (Expert)
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29 March 2022 If you have to increase the debtors balance then you will issue debit note.

If the sale was wrongly invoiced at higher rate then you have to reduce the debtors balance by crediting it and issue credit note.

abhijit majumder

abhijit majumder (Querist)
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29 March 2022 Thanks to CA Puja Sharma and CA R Seetharaman for immediate reply
Regards
Abhijit

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