• Debit Note
In accounts there were many illustration when an Organization receive debit note or it has to issue a debit note to its suppliers, customers, employees, third party .when you get a debit note, from a third party, you have to credit the account of the issuer of the note and debit the related expenses account. In such a case, you have to debit relevant purchase and duty amount as related in the debit note and credit the supplier account. Likewise if you have issued a debit note to your customer, you have to debit your customer’s account and credit the related account.
Some main situation under which you may issue or receive a Debit Note:
a) Rate variation in sales or purchase invoice.
b) Difference between billed and actual quantity of the invoice
c) Interest on late payment to and from customers.
d) Quality differnance.
e) Wrong credit or debit entry in the books of account of any party.
• Credit Note
Credit notes, as with invoices, must have a chronological numbering system. Issuing a credit note is approximately the reversal of issuing an invoice. The customer must obtain a copy in order to repay any VAT claimed, and you can recover any VAT paid. Credit note request is a sales document used in objection processing to request a credit note for a customer. If the price calculated for the customer is too elevated, e.g. because the wrong scale prices were used or a discount was forgotten, you can create a credit note request. The credit note request is sterile for further processing so that it can be tartan. If the request is accepted, you can remove the chunk. The system uses the credit note request to create a credit note.
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