Betty Bookkeeper explains when a business should issue a debit note vs a credit note – Oct 2015

/in /by

Hi Betty 

When should a business issue a debit note as opposed to a credit note?

I look forward to your reply.

Kind regards,
Chantel

 

Hi Chantel

This often causes confusion in practice and is often taught incorrectly at school level too.

A credit note is issued to a debtor that has returned previously purchased goods or services, or has requested a rebate on such purchase for various reasons – e.g. inferior goods, advertised discount never allowed at point of sale, etc.

A debit note is also issued to a debtor, but to increase the amount pertaining to a credit invoice – when such an invoice is too low in value.

For example:

A business sold goods on credit to Mr X for R 342 including 14% VAT. The invoice has been batched and posted already. The business then realises that the invoice amount should actually have been R 570 including VAT. As the law prohibits the business from issuing another invoice with a different invoice number for the same goods, the business has to issue a debit note for the difference. The debit note will be for R 228 including VAT.

Hope that helps!

Don’t forget that I’m here to answer your questions about the ICBA, or just queries about your accounting at work. All you have to do is email me!

 

2016 ICBA Brochure available for download

/in /by

Do you currently hold an ICB qualification and have appropriate work experience? If so, you will be able to register for membership with the ICBA and put those all-important letters (designations) after your name. You can also enjoy a list of other benefits associated with being a member of a professional body.

Want to find out more? Download the 2016 ICBA Brochure (PDF 226KB).

 

9 reasons to join the ICBA

/in /by

The ICBA is a professional body for finance professionals and office administrators. If you’re qualified in these fields, or are studying them right now, here’s why you should become an ICBA member:

  1. If you already hold an ICBA-recognised qualification (from the ICB or elsewhere), you can put a designation (letter – e.g. CSBIcba(SA)) behind your name, as long as your ICBA membership is current.
  2. Being a member of a professional body shows you take your career seriously.
  3. It reassures employers and clients that you are committed to your professional development (you have to complete 20 hours of Continuing Professional Development every year to keep your membership valid).
  4. You’ll have access to workshops and seminars to help you earn CPD points.
  5. You’ll get a membership certificate that is valid until the end of the calendar year.
  6. You’ll also get a free tax booklet after the annual Budget Speech.
  7. And we’ll send you a free ICBA Member’s Notebook.
  8. Betty Bookkeeper will be standing by to help you – she’s your personal technical helpdesk!
  9. You can use the ICBA logo in your email footers, business cards, etc. for as long as your membership is current.

Click on the links for more info on: