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- Topics: 6
- Replies: 8
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please make me clear on following terms:
sales invoice
purchase invoice
remittance advice
debit note
credit note and.
issue… ”issued by a supplier as a request for payment’. what does it mean?? if possible please explain by means of examples..supplier sent an invoice for 150 which you have not yet recieved..what does it mean?
Sales invoice is the document produced by the selling company showing the amount to be paid. It is sent to the purchasing company.
Purchase invoice. This is the name given to the document a company receives from the selling company when they purchase goods (which the selling company called their sales invoice).
Remittance advice. When a company pays an invoice, they sometimes (not always) send a document to the people they are paying to notify them that they have paid. This is called the remittance advice.
Credit note. This is effectively a ‘negative’ sales invoice. If, for example, the purchaser returns goods, then the company that had sold the goods sends a credit note.
Debit note. If you return goods to a supplier then you might enclose a debit note which is a document telling the supplier what you are returning and how much money they owe back to you as a result.
If a supplier sends me an invoice for $150 it means that I have bought goods from them for $150 and the invoice tells me how much I owe them. They will likely post the invoice, and so it might take several days between them issuing it and me actually receiving it.
(Invoices are not always delivered with the goods – the goods might have arrived already, but the invoice might still be in the post)- Topics: 6
- Replies: 8
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thank yuh so much 🙂
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