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Who issue Credit Note?

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Question added by Md Jiyaul Abdula , Senior Project Accountant , Gate City Trading and Contracting
Date Posted: 2014/08/26
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Credit Notes are issued by the seller to the buyer.

A credit note is issued to correct a genuine mistake or to give a credit to your customer under the following situations:

  • correction of a genuine mistake (e.g. goods invoiced as standard-rated which should have been exempt or zero-rated)
  • supply did not take place
  • charges are partly or fully waived before/after delivery of the goods
  • goods or services are accepted, but terms of the contract are not fully met (e.g. sub-standard goods are accepted by the customer at a reduced price)
  • goods are returned or services are not accepted
  • goods and services are supplied for an unconfirmed consideration

Deleted user
by Deleted user

Credit Notes are normally issued by the supplier to the customer for discounts, rebates and sales returns. Credit Notes can alos be issued in case price is over-charged to customer.

 

In exceptional cases customer can also issue credit note when price is wrongly short charged or excess stock is delivered.

 

 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Credit Note:  These are all valid vouchers authorising the receiver to make a Debit in the account of the Issuing party (Usually creditors).  All answers above hold good.

Mohd Mustaqeem
by Mohd Mustaqeem , Executive Secretary , SAUDI PAN KINGDOM CO

Supplier issue credit notes for vendor and there are mention term and conditions for supply and payments. This is useful both party for supply and payments.

 

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