Debit note

no ...credit note is issued to customer in case of sales return... u have to just record it...

no you dont have to issue any credit note but you have to record the same in your books

but can anyone clarify as to when then credit note is to be issued

A credit note is a monetary instrument issued by a seller that allows a buyer to purchase an item or service from that seller on a future date. Credit notes may be issued by a seller as a goodwill gesture to a buyer who wishes to return previously purchased merchandise (instead of cash repayment) in circumstances where the original sales agreement did not include an explicit refund policy for returned items. In such circumstances, a credit note of value equal to the price of the returned item is usually issued allowing the buyer to exchange his purchase for other items available with the sale. A credit note is a monetary instrument issued by the business that allows a buyer to purchase goods or services from the business on a future date. It is used by the customer who wishes to return previously purchased merchandise and to purchase some goods or services on a future date. A Credit Note or Credit Memo is a document used to adjust or rectify errors made in a sales invoice which has already been processed and sent to a customer. If you have already sent an invoice to a customer but now need to provide a credit for that invoice, you would send them a Credit Note or Credit Memo. You can think of a credit note as a "negative invoice."

Rugs i bel this article will help you

No, there's no need to issue credit notes against debit notes or vice versa.. However, it will be a good practice to get debit notes (even credit notes in some cases) issued to parties acknowledged by them, so as to avoid future complications.

hi mohd gouse for example ,, u run a leather goods co. and u purchased leather of Rs 50000 from AP leathers for the purpose of job work. Now u find that leather of worth Rs 5000 is of inferior quality then in this case u will issue a debit note to the supplier i.e., AP leathers , .U will issue a debit note of Rs 5000 to the AP leathers and u will send the inferior quality leather with the debit note. In this way ur payment will be debited by 5000 and u have to pay only 45000. And some times suppliers issue a credit note when u return back their default goods to them.In that case they credit ur account by the amount mentioned in the credit note.

I WANT TO ASK YOU ALL THAT WHAT YOU MEAN BY ISSUE... Is recording a transaction in our books of accounts is not "issue" as Mr. Gouse asked. Issue is not printing a transaction and sending through post, it is just recording a transaction. If some one is debited us in his books and if we vouch this transaction genuine then we have to pass a credit journal in our books. The other name of credit journal is credit note... "Go deep in concept which will make freelance feelings ; not in accounts which will cause for tension only"

I WANT TO ASK YOU ALL THAT WHAT YOU MEAN BY ISSUE... Is recording a transaction in our books of accounts is not "issue" as Mr. Gouse asked. Issue is not printing a transaction and sending through post, it is just recording a transaction. If some one is debited us in his books and if we vouch this transaction genuine then we have to pass a credit journal in our books. The other name of credit journal is credit note... "Go deep in concept which will make freelance feelings ; not in accounts which will cause for tension only"

If Debit note is issued to creditors, it is not necessary that credit note has to be received by them subject to that the same has been approved by the creditors. Similar case is with Debtors.

What you mean by Credit and Debit Note ? Pls. give example also to understand.

Thanks n regards

Girish

i always thought that when i intent to make a person my debtor or creditor for some dispensaries or charges which are in nature of reimbursement. Eg. electricity for use of premises are booked through such notes.

In such cases party cant raise bills and so they issue notes

whats your take?

UR question not silly, Any how no need to issue the credit note, but the receiver have to raised credit note if they get debit note. Silly answer.

 

How can we use credit note for Service Tax Transaction? Legal document for Service tax transaction is Service Tax Invoice which shall have all relevant information required by law which might be missing on credit note.