Credit Note and Debit Note
A credit note and debit note are both types of accounting documents used to record transactions between two parties.
A completed credit note is a document that is issue by a seller to a buyer when goods or services are return, or when the price of goods or services previously sold is reduce. It is a way for the seller to give the buyer credit for the value of the goods or services that have been return or discount. The credit note will typically include details such as the date of the original sale, the reason for the credit, the amount of the credit, and any relevant reference numbers or order details.
A completed debit note, on the other hand, is a document that is issued by a buyer to a seller when there is an overcharge or an error in billing. It is a way for the buyer to request a reduction in the amount owe to the seller, and to provide an explanation of the reason for the debit. The debit note will typically include details such as the date of the original sale, the reason for the debit, the amount of the debit, and any relevant reference numbers or order details.
Both credit notes and debit notes are important accounting documents that help to ensure the accuracy and completeness of financial records. They provide a clear and systematic way of recording and tracking transactions, and can help to resolve disputes and maintain good relationships between buyers and sellers.
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