Types of Accounts

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Business Terminology

CREDIT NOTE:

 A credit note or credit memorandum (memo) is a commercial document issued by a

seller to a buyer. The seller usually issues a Credit Memo for the same or lower amount
than the invoice, and then repays the money to the buyer or sets it off against a balance due
from other transactions.
en.wikipedia.org/wiki/Credit_note
 A monetary instrument issued by a seller that allows a buyer to purchase an item or
service from that seller on a future date
en.wiktionary.org/wiki/credit_note
 Created to reduce the amount of an existing vendor payable or customer receivable.
www.finance.ualberta.ca/guide/topics/glossary/index.cfm
 Document showing details of a refund due to a customer. Must show the equivalent
details of an invoice
www.accountspayable.co.uk/resources/glossary.php

DEBIT NOTE:

A direct debit or direct withdrawal is an instruction that a bank account holder gives to his
or her bank to collect an amount directly from another account. It is similar to a direct
deposit but initiated by the beneficiary.

A note indicating an amount owed by a person or company. Serves the same function as an
invoice.
Form or letter issued by a seller to advise the amount owed by the buyer. An invoice is a
type of debit note. Also called debit memo.

DEBIT MEMO - It is a sales document used in complaints processing to request a debit

memo for a customer. If the prices calculated for the customer were too low, for example,
calculated with the wrong scaled prices, you can create a debit memo request. The debit
memo request can be blocked so that it can be checked. When it has been approved, you
can remove the block. It is like a standard order. The system uses the debit memo request to
create a debit memo.
CREDIT MEMO - A transaction that reduces Amounts Receivable from a customer is a
credit memo. For eg. The customer could return damaged goods. A debit memo is a
transaction that reduces Amounts Payable to a vendor because, you send damaged goods
back to your vendor.
Credit memo request is a sales document used in complaints processing to request a credit
memo for a customer. If the price calculated for the customer is too high, for example,
because the wrong scale prices were used or a discount was forgotten, you can create a
credit memo request. The credit memo request is blocked for further processing so that it
can be checked. If the request is approved, you can remove the block. The system uses the
credit memo request to create a credit memo.
http://wiki.answers.com

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