29 January 2014
A debit note is a note indicating an amount owed by a person or company. Serves the same function as an invoice. However an invoice is usually used for sales made and are entered in running number in the sales journal. To bill someone for anything else owed you other than for a sale, you use a debit note.
A Credit Note or Credit Memo is a document used to adjust or rectify errors made in a sales invoice which has already been processed and sent to a customer. If you have already sent an invoice to a customer but now need to provide a credit for that invoice, you would send him a Credit Note or Credit Memo. You can think of a credit note as a "negative invoice."
Considering two companies account A’s (Purchases$) & B’s (Sells$), they make financial transaction within each other. Assuming B is a trader and the goods sold are what it normally sells, then In A's books Dr Purchases or Merchandize Inventory Cr Cash or Accounts Payable Since A is doing the purchasing it wouldn't be issuing any document other than perhaps the purchase order.
In B's books Dr Cash or A/cs Receivable Cr Sales B would issue a sale invoice to A
Considering two companies account A’s (provide training$) & B’s (attends training$), they make financial transaction within each other. I'm assuming A is not a school or training centre, otherwise fees earned will be like normal sales to A. In A's books Dr Cash or A/cs Receivable Cr Sundry income If training is not A's core business, then A might issue a debit note to B
In B's books Dr Training expense Cr Cash or A/cs Payable Since B is attending the training it would not issue any document except perhaps the registration form to register a place at the semina
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