Credit note Vs Netting off invoice value

Cost Accounts 132 views 1 replies

Dear All,

 

Please guide me what is the best way to adjust an Invoice amount which is paid earlier. should I ask for credit note or netting off the current invoice produced by the vendor. And what are the other consequences if the paid amount pertains to any previous financial year.

Example: I have paid my vendor against 100 cases of disbursement for the month of March'22 and April'22.Now in june 10 cases for both the month have been cancelled.Should i ask for credit note against cancelled cases or should i adjust the amount/cancelled cases in june'22 month's disbursal.

Which is the best process and why.
Plaese suggest.

 

 

Replies (1)

Issuing Credit note and keeping case by case track record will always be a good accounting practice. 

payment against the same can be adjusted against the subsequent orders/cases, which is purely based on mutual understanding between you and your vendor. If vendor does not want to make separate payment against the issued credit note, it is quite acceptable across industries that it should be adjusted against next payment. 


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