Debit Complaint Credit Complaint Helps Inwards Adjusting Books Of Account

On receipt of goods, the buyer compares amongst the particulars inward the invoice and/or order. On a comparison, the buyer may let on approximately discrepancies. In such a case, he volition social club a complaint amongst the seller. On receipt of the complaint, the seller verifies the nature of a complaint as well as thence promptly makes necessary adjustments.

Necessary adjustments are made inward observe of claims arising out of errors inward the invoice or delivery of defective goods yesteryear exchanging debit regime notation as well as credit regime notation betwixt the buyer as well as the seller.

What is Debit Note? Meaning ↓

A debit regime notation is a document which debits the delineate concern human relationship of the political party to whom it is sent. It shows the details of the amount amongst which the client is debited. It is inward the shape of an invoice. The political party who sends it becomes a creditor as well as the political party to whom it is sent becomes a debtor.

Along amongst the defective goods, the buyer sends a debit regime notation to the seller informing him that he has debited the seller's delineate concern human relationship amongst the amount of the goods returned. By sending the debit note, the buyer reduces his liability towards the seller. The green contents of the Debit Notes are series number, mention as well as address of the sender (buyer), appointment of issue, mention as well as address of the receiver (seller).

When Debit Note is Sent?

The debit note is sent inward the next cases :-

1. On returning the goods, the buyer sends a debit regime notation to the seller. The goods may survive returned when they are defective, damaged, faulty or non according to the samples provided.
2. The seller may post it to the buyer when the buyer is charged less due to problems inward calculation or omission of items inward the invoice.
3. When the buyer is overcharged, he sends a debit regime notation to the seller for effecting the necessary adjustment.

What is Credit Note? Meaning ↓

Credit Note is a regime notation sent yesteryear 1 political party to approximately other on crediting the account. The credit regime notation may survive required due to calculation mistakes inward the invoice or work amongst the goods supplied. The political party who sends it becomes a debtor as well as the political party to whom it is sent becomes the creditor.

When Credit Note is Sent?

The credit note is sent inward the next instances :-

1. The seller sends it to the buyer on receipt of goods returned dorsum yesteryear the buyer.
2. The buyer sends it to the seller when he has been undercharged.
3. The seller sends it to the buyer when he has overcharged the buyer.

Contents of Debit as well as Credit Notes ↓

The contents of debit as well as credit notes are :-

1. Name as well as address of both the parties, i.e. the 1 who is issuing as well as the other to whom it is issued.
2. Serial number as well as appointment of the note.
3. Reference to the invoice received earlier.
4. Reference of the goods received dorsum or returned back.
5. Amount that is to survive adjusted.
6. Signature of the political party issuing the note.

It is to survive noted that either political party tin dismiss post a note, 1 time the mistakes are noticed or goods returned. The political party receiving a especial regime notation must admit it yesteryear sending the reverse type of note.

Thus, debit as well as credit notes aid inward making necessary adjustments inward the books of account.