Account head for credit note

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Accountant
119 Points Posted on 19 February 2021
I wanted to know the procedure and documentation for credit note to an export (Customer) on quality issue. if the amount is substantial. the material will be not return b
ack to india, it will scraped at customer end.

to which ledger we should give effect in credit note? Sales or discount?
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On 19 February 2021 at 10:11 Report
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This discussion addresses the accounting procedure for issuing a credit note to an export customer due to a quality issue, especially when the material isn't returned. The user seeks guidance on whether to debit the 'Sales' or 'Discount' ledger. A key point raised is the potential need for Reserve Bank of India (RBI) or bank permission for substantial amounts.

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GST Consultant
15986 Points Posted on 19 February 2021
You cannot just issue a credit note in this regard. You have to take permission from rbi or your bank since you are the amount is substantial
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On 19 February 2021 at 10:21
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Accountant
119 Points Posted on 19 February 2021
Thank you for your reply.
okay sir but how to pass the entry.?sales or discount.
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On 19 February 2021 at 10:42

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