Streamline Your Operations with a Credit Note Bill Format for Security

Credit note bill format for Security

hi friends good day today let us try to understand about what is debit note what is credit note what are the details to be covered in debit note and credit note what are the differences between credit note and debit note and the uses of credit note and debit note in this video ing to nora roberts if you don't ask the answer is always no before we go in please subscribe for more videos click the bell icon for updates let's get right to it when good supplied by the supplier or seller or service provider are returned or there is a situation where there is a revision in the invoice value due to the goods or services not being up to the mark and the customer is not satisfied or goods not delivered on time then debit note or credit note is issued by the supplier and receiver of the goods and the services what is debit note the client or the buyer or the customer issues this note to the seller or service provider or the supplier in order to request the client to refund or adjust the payment made in the event of faulty goods sold or the goods are not up to the mark once the debit note is issued the supplier account is debited and the customer account is credited the situation in which a debit note is issued is when there is a change in the value of the goods after the goods are delivered and the invoice issued by the seller this can be due to various reasons as previously mentioned such as a bad quality of goods delivered return of goods as they are not up to the mark etc in this case the value of the goods decreases due to which a debit note is issued by the purchaser to the seller the debit note provides the details of the amount of money that is debited from the seller's account and also states the reason as to why it happened when the debit note is issued the credit balance of the seller's account decreases which reduces the seller's balance the debit note reduces the liability for the buyer which means that lesser amount is required to be paid by the buyer to the seller in order to settle this liability the seller issues a credit note as a response or acknowledgement of the debit note what is a credit note a credit note is issued by the seller to the buyer if the seller failed to deliver the product or service on time the supplier voluntarily comes forward to refund the invoice in part or the whole as the invoice once created cannot be deleted thus a credit note must be issued for adjusting the payment one other situation where the credit note is issued by the buyer is that if extra goods are being delivered or the goods already delivered have been charged at an incorrect value and then a debit notice issued by the seller and in response to it the buyer issues a credit note when the debit note is issued the debit balance of the bias account increases it means that more amount is required to be paid by the buyer to the seller to settle this liability thus the credit note increases the liability for the buyer details to be covered in debit note and credit note name address and gstin of the supplier and also of the recipient if registered nature of the document whether it is a credit note or a debit note a consecutive serial number containing only alphabets and or numericals are unique for a financial year issued date of the document serial number and date of the corresponding tax invoice or bill of supply the taxable value of the goods or services rate of tax and the amount of the tax credited or debited to the recipient signature of the supplier or his authorized representative these two nodes can be issued anytime there is nothing like a time limit to issue the nodes also debit note and credit note issue have to be declared in the gst returns filed in the following month for the month in which the document is issued differences between credit note and debit the difference between credit notes and debit note is that in credit notes you record money that you owe to the customer or the client due to a downward revision in an invoice and in debit notes you record the money that the customer owes the seller due to the upward revision in the invoice a debit note is issued when there is a return of the goods and reduces the receivable amount while a credit note is issued when there is a sales return and reduces the amount payable uses of credit note the main use of the credit note is that it permits a buyer to buy a good or service from the retailer on a future date in a form of credit a credit note is generally a gesture of proof and evidence to a buyer who requires to return earlier purchase of the product rather than repayment of cash selling and purchasing activities whether it is a cash or credit transactions the credit notice to transform the invoice previously issued the changes are significant due to the purposes like cancellation of goods due to damage order quantity is less than the ordered quantity return of goods due to damage errors in the recipes etc in these cases the buyer or the customer issues the debit note for which the seller acknowledge and issue a credit note in the matter of returned goods for accounting objectives the credit notes play an important part uses of debit note and when it is issued a customer prepares and sends it to the seller in case of purchase return issued by buyer on receiving damaged goods or less quantity than ordered issued by the buyer or the customer if he is overcharged our seller agrees to give discount issued by the seller if he or she by mistake undercharged the buyer that is charging less than the billing amount well thank you so much for watching please like this video and do share [Music] you