What Are Debit And Credit Notes And Where Should They Be Used

Modified on Mon, Jun 6, 2022 at 2:09 PM

Problem Scenario:

 

Users need to know which transactional form would be applicable for their different types of business process scenarios such as additional sales or sales return, additional purchases or purchase returns, etc.

 

Resolution(s):


DEBIT NOTES


1. Sales Debit Notes - is used for additional sales to customer and increases the Accounts Receivable

 




 





2. Purchase Debit Notes - is used for additional purchases from your supplier and adds up to your Accounts Payable










3. Customer Debit Note - is used for transactions not related to Quantity (such as Service items) and also increases the Accounts Receivable

 






4. Supplier Debit Note - same as Customer Debit note (used for such as Service items) and increases the Accounts Payable









CREDIT NOTES


1. Sales Credit Note - used for Sales Returns and decreases the Accounts Receivable











2. Purchase Returns - decreases Accounts Payable











 

3. Customer Credit Note - is used for transactions not related to Quantity (such as Service items) but decreases the Accounts Receivable










4. Supplier Credit Note - same as Customer Debit note (used for such as Service items) but decreases the Accounts Payable









Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article