Issued by | The credit is issued by seller to the buyer showing good return and accepted | While the debit note is issued by the buyer or the customer of the goods. |
Possible effect | Credit notes reduce accounts receivables. | Debit notes reduce accounts payables.
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Used of color ink | Credit note color is red. | Debit note color is blue.
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Reflect | credit reflects only a negative amount. | Debit reflects only a positive amount.
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Updated book | The sale return book is updated | Purchase return book is updated
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Exchanged against | Credit notes are also issued in exchange for debit notes. | Debit notes are issued in exchange for credit notes.
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Buyer to seller | The Credit notes are issued when the seller or the supplier undercharges or has delivered additional goods. | Debit notes are issued when a customer or buyer returns the goods to the supplier or the seller.
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Seller to buyer | Credit notes are issued when the seller or supplier acknowledges the debit note. | While debit notes are issued when the buyer or customer returns/ cancels goods purchased.
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Another form | Another form of the credit note is the sales return of goods. | Another form of debit note is the purchase return of goods.
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Result | Sale accounts are reduced | Purchase account is reduced
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Issued to | The credit note is issued to the customer or the buyer of the goods. | The debit note is issued to the supplier or the seller of the goods.
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Marjina Muskaan