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A debit note is a method of claiming costs paid by your company to suppliers or clients. A credit note on the other hand is a way of reporting reversals or refunds you owe back to other parities. Both debit and credit notes use rather expense accounts and inventories transferred that are either credits or debits depending on the type of transaction you are making and transferring to other companies. This could be also used between the parent company and its subsidiaries.
Debit what comes in credit what goes out
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