- This topic has 9 replies, 5 voices, and was last updated 3 years ago by
.
- Posts
Why does the bank send a debit or credit memo?
Sorry but I haven’t find these in your lectures of f3
The bank does not send debit or credit memos!
You have headed up this thread “Debit and credit notes”.
A credit note is effectively a negative invoice sent to a customer. For example, they may have returned goods and so instead of paying back the cash you might send them a credit notes (a negative invoice) so that next time they buy anything they will pay less (they will subtract the amount of the credit note).This is covered in our lectures – our lectures cover everything needed to be able to pass the exam well.
If you mean credit and debit notes, then there is nothing extra to know other than what I typed in response to the previous post.
If you mean Paper FA for the ACCA, then the free lectures are a complete course and cover everything needed to be able to pass the exam well.
A debit note is the opposite of an invoice.
If a supplied sends you an invoice but later decides to reduce or cancel the invoice (because maybe they charged too much or maybe you returned some of the goods) then they will issue a debit note. You will then enter it in the opposite way to the way in which you entered the invoice originally, because you then owe less money.
- The topic ‘Debit and credit note’ is closed to new replies.