Dear Friends!
I would like to have a breif discussion about the Two Different Term : DEBIT ADVICE & DEBIT NOTE
As per my views, these two terms in respect of a business transaction are as follows
DEBIT NOTE:
A Debit Note is issued against Deduction of a portion of amount against payable to supplier towards reasons like rejection/shortage/damages,etc of supplied materials or expenses incurred on behalf of the third party like Freight/Insurance/Packing/Marketing/Conveyance, etc.
Here I mean the Debit Note is a document representing the deductions from the payables of a Third Party of a business. AND IT IS BEING DEBITED ONCE THE DEBIT NOTE ISSUED
DEBIT ADVICE:
Though the transaction of the both is the same ie deduction of amount against payable. But the Place or to whom it was deducted makes the difference.
Here, an Expenses or cost of a transaction was already incurred on behalf of a person/company related with the business itself like Tieup arrangement of companies for manufacture, etc.
Hence, AN DEBIT ADVICE IS BEING ISSUED TO THE CONCERN PERSON/COMPANY RELATED TO THE MAIN BUSINESS ABOUT THE DEDUCTION/EXPENSES INCURRED,ETC.
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I hope I am in the right way and request CA Club freinds to comment on this please to have a better terms for this phrases.
Best Regards.
M.Sivakumar
Manager-Accounts
CAclubindia
