bill & invoice
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 November 2010
What is the difference between bill and invoice?
also what is difference between credit note and debit note?
when these are raised on customer?
also what is difference between credit note and debit note?
when these are raised on customer?
30 November 2010
The term Bills means: A note of charges. It is a final bill, which includes the charges of the articles which the persons bought. It is in printed form and it is called as final Bill. The term invoice means A document issued by a seller to a buyer listing the goods supplied and stating in it the sum of money due. Firstly, invoice is given and then goods are supplied and then the final payment is given. That is called an invoice. In case of Bill goods and money transactions take place at one time.
Invoice is that document issued by the supplier to the customer with his best offered rates without negotiations. Bill is final document after all settlement on goods sold.
Invoice is temporary and can be changed as taxes can be implemented, discounts can be offered. Whereas Bill is permanent document which can't be changed and have no duplicate identity i.e. there can't two bills for same goods but there can be two or more invoices for same goods.
Now a days both bill and invoice contains details in both group manner or derivative manner as per the requirement of customer.
Invoice implies that deal is still under process and Bill implies that Deal is complete and final value of goods has been decided.
Bill is legal document used for government proceeding purposes whereas invoice is on the part of supplier and customer understanding. Invoice is not necessary by law whereas bill is necessary by law for any sale purchase transaction.
Invoice is that document issued by the supplier to the customer with his best offered rates without negotiations. Bill is final document after all settlement on goods sold.
Invoice is temporary and can be changed as taxes can be implemented, discounts can be offered. Whereas Bill is permanent document which can't be changed and have no duplicate identity i.e. there can't two bills for same goods but there can be two or more invoices for same goods.
Now a days both bill and invoice contains details in both group manner or derivative manner as per the requirement of customer.
Invoice implies that deal is still under process and Bill implies that Deal is complete and final value of goods has been decided.
Bill is legal document used for government proceeding purposes whereas invoice is on the part of supplier and customer understanding. Invoice is not necessary by law whereas bill is necessary by law for any sale purchase transaction.
30 November 2010
Debit and credit Note :
1. 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.
2. 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.
You can use credit memos in Sales and Distribution (SD) for assigning credit memo requests to the open invoices and in Financial Accounting (FI) for assigning credit memos and payments to the open invoices and carry out clearing with them. If you use both Financial Accounting (FI) and Sales and Distribution (SD), there is a 1:1 relationship between the credit memo request and the credit memo item posted in Financial Accounting (FI). As soon as you bill the credit memo request together with other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.
For credit memos, credit memo requests, and payments, you have the following assignment options:
- Assignment to a single invoice
- Assignment of a partial amount to an invoice
- Assignment to several invoices
When you post credit memos, the payment programme processes them automatically. If the credit memo is specifically related to a particular open invoice item, the payment program automatically attempts to offset the credit memo against the open item. If it is not possible to completely offset the credit memo against an invoice, you can post a debit memo to the vendor, who is to reimburse the amount. Then you can apply a multilevel dunning program.
3. Debit memo request 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.
4. As mentioned above, creating a credit or debit memo request enables you to create credit or debit memos based on a complaint. For this first create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways:
– Without reference to an order
– With reference to an existing order
Here you enter which order the complaint refers to.
– With reference to an invoice
Here you enter which invoice the complaint refers to.
In all cases, you specify the value or quantity that should be in the credit or debit memo.
1. 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.
2. 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.
You can use credit memos in Sales and Distribution (SD) for assigning credit memo requests to the open invoices and in Financial Accounting (FI) for assigning credit memos and payments to the open invoices and carry out clearing with them. If you use both Financial Accounting (FI) and Sales and Distribution (SD), there is a 1:1 relationship between the credit memo request and the credit memo item posted in Financial Accounting (FI). As soon as you bill the credit memo request together with other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.
For credit memos, credit memo requests, and payments, you have the following assignment options:
- Assignment to a single invoice
- Assignment of a partial amount to an invoice
- Assignment to several invoices
When you post credit memos, the payment programme processes them automatically. If the credit memo is specifically related to a particular open invoice item, the payment program automatically attempts to offset the credit memo against the open item. If it is not possible to completely offset the credit memo against an invoice, you can post a debit memo to the vendor, who is to reimburse the amount. Then you can apply a multilevel dunning program.
3. Debit memo request 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.
4. As mentioned above, creating a credit or debit memo request enables you to create credit or debit memos based on a complaint. For this first create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways:
– Without reference to an order
– With reference to an existing order
Here you enter which order the complaint refers to.
– With reference to an invoice
Here you enter which invoice the complaint refers to.
In all cases, you specify the value or quantity that should be in the credit or debit memo.
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