when do we raise debit and credit note??
Anandan
(HOD accounts)
(502 Points)
Replied 08 January 2013
@ Geetha, Your will raise debit note, when you want to deduct certain amount from the total invoice. for eg. If I raise an invoice (for me sale and for you its purchase) for Rs.100/- and if you find some defect, shortfall in qty of material supplied or if there is some price difference for say Rs.10/- then you will raise an debit note Rs.10/-. This will help you to reduce the outstanding payable to me by Rs.100-10 = Rs.90/-. and vice versa for credit note.
Hope I made the concept little clear to you.
Regards
Anandan.s
Geetha
(Aricle)
(103 Points)
Replied 09 January 2013
so the reasons are short fall or defects the purchaser raises debit note... the wat about discounts sir?
Anandan
(HOD accounts)
(502 Points)
Replied 09 January 2013
Respected Madam,
What do you mean by discount? If its after sale, discount i.e. after receiving the invoice, if you ask the supplier to give you some discount or to reduce the invoice value, then he can raise a creit note to you and in your books of accounts, it will Debit note.
Regards
Anandan
Geetha
(Aricle)
(103 Points)
Replied 09 January 2013
oh k understood.. thanks for clear explanation.... respcted sir,
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