[katraju srinu]

Hi

I want to know definition of Debit Noe, Credit Note.

[ROLCAM]

A debit note is a bill.
You need to pay for something.

A credit note is the opposite to a debit note.
This signifies that they overcharged you
and they are giving you a refund.
This should be accompanied with a cheque or
value is received on another subsequent transaction.

[ezhillavanya]

I am not understand in the credit note , debit note please explain in the full details

[ezhillavanya]

Please explain in the credit note , debit not in the full detail

[morgaine300]

One post will suffice, and we also appreciate if you start your own thread for your question instead of dragging up old threads.

That terminology is not used here, so I don't know what they mean. The debit and credit are referring to the sides of the account, but which is which depends on circumstances. Since Rolcam uses different terminology than I do, I can sometimes figure it out from what he's saying, but what he is saying here is not consistent and does not make any sense.

So I will explain from my point of view and what I would call things. From a receivable side, an invoice sent out is a debit to the receivables. We would not call this a "debit note" however. It's a debit to the account, and the piece of paper being sent is usually called an invoice, but could be called a bill. If a customer returned something, or something was damaged in shipment (and assuming they had not paid their bill yet), we would issue a credit memoradum, or credit memo for short. That term comes from literally crediting their receivable account, which reduces their balance owed. Because of the similar of name, I could see a credit note meaning what I'd call a credit memo.

From the payable side... if we purchased something or used a service and still owed for it, we would credit the payable account, representing how much we owe. The piece of paper for that could also be referred to as either an invoice or a bill. (The piece of paper can be called the same regardless -- it's only a matter of who sent and who received and who's paying whom.) Now, if we return something or something is damaged, we could issue a debit memorandum (debit memo), indicating that we're meaning to reduce our payable and not owe as much. We literally would debit the payable account to reduce that balance due.

Your terms debit note and credit note may mean like our debit memo and credit memo. It may be terms you use like we'd use invoice or bill. It may also mean literally a "note," as in a promissory note, which would then be used the same way as an invoice or bill. But no matter how you look at it, going into the account is debit for receivables and credit for payables, and coming out of the account is credit for receivables and debit for payables, regardless of what name you choose to call the paperwork. So you may have to figure it out from there, unless someone else comes along who knows these exact terms.

Rolcam's first statement that a debit note is a bill, something you would pay, makes no earthly sense to me. If you had a bill you owed, you'd credit your payables, not debit it. I don't get that.

[amamanbhasin16]

When you sold any product after some time client return the product which is sold perior then he get the credit note against the bill.

When you purchase any product from your supplier if you return that then you give him debit note.

[p.sivaraj1988]

Debit note means purchase return

Credit note means sales return of a company

[mdsabir]

To take return goods from sundry debtor is called credit note .to return goods for seller is called debit note.

[SRIKANTH PATELD]

But there are different cases regarding credit note
For example in the case of seeds developing companys
1.The distributor is the debtor of the company (sales as made to him)
2.They develop a seed and it will distributed to the farmers by the distributor
3.So the distribution is made by the distributors by appointing employees on behalf of the company
4. The company has to pay the salary to them but,the salary is paid by the distributor to the employees

So in the given case it is the expense of the company
Actual entry for salary is paid by the company
a.Salaries a/c Dr XXXX
To cash XXXX
b.But in the given case salary is paid by our debtor so the entry is
Credit note a/c Dr XXXX
TO Debtor XXXX

[paraclete]

Are you being argumentative for the sake of it

[kumaripooja996]

A document used by a purchaser to inform a vendor of the quantity and dollar amount of goods being returned, and requesting that the dollar amount be returned to the purchaser. A debit note is often used to return goods on credit. The vendor then issues a credit note to the purchaser indicating that the goods have been received, and that the purchaser will not have to pay for them.

[paraclete]

This is an old thread