Customers' Debit Journal  

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Generally a debit note to customer is to increase the amount(Debit) the customer owes you, and credit your relevant accounts in the general ledgers.

They are usually billings that are outside the business activity.

The nature of the entry could be due to
1) Reimbursement of expense that your company pay first that need to bill the customer
2) Adjustments of extra payment (of few cents) need to zero off
3) Over payment by customer, now need to refund back
4) Freight cost to be borne by customer that need to bill back
5) Sales or disposal of fixed assets

 

Coming soon

 


 

At [A/c Entry], select [ Customers'  Debit Journal] , Click [Add]

 

1.        To issue a Debit Note to Customer -  reimbursement of charges...Read more...

Assuming there was a joint marketing activities and your company had paid in full the marketing expenses and now requires to bill your customers for their portion of the marketing expenses.

      Dr Trade Debtors - ABC      $1,070.00
      Cr Advertising Marketing expenses                          $ 1,000.00
      Cr Output Tax                                                           $      70.00  

Assuming you wish to bill your customer for marketing fee that is shared by both parties.

You will Debit the customer ABC $1070 [1]  and credit advertising & marketing expenses $1,000 [6], credit GST $70
                     
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2.        Adjustments of extra payment (of few cents) need to zero off...Read more...

 

If there is a excess over payment of example $0.45, as shown in customers' ledger below,
 


 
 
Debit the customer $0.45 and credit the sales discount  (or other income)

 

 

At Receipt, highlight on the Receipt with the advance of $0.45. Click [Edit] and apply the excess $0.45 against the debit note raised, as shown below.

The resulting effect would be show in the customer ledger as shown below.

             

 

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3.        Over payment by customer, now need to refund back...Read more...

            See Refund to customer

 

4.        Freight cost to be borne by customer that need to bill back...Read more...

 

         
 
 
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5.        Sales or disposal of fixed asset...Read more...

         

           
 
 
                                                              ------- Back to Top-------------

 

 Next, learn how to print a Debit Note

 


Related Topics

To close off inactive customer's negative balance account

 

Tax - OS (Out-of-scope)

 

Customer Account Activity Report

 

Refund to customer

 

Audit Adjustments - AR

 

Print Customer's Debit Note

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