Credit Notes Definition & Issuance Procedure

Credit Notes:-

Credit notes are issued on account of a number of reasons such as:

  • Discounts 
  • Special discount, Commission or any reimbursements 
  • Sales Return for various reasons, etc. 
Credit notes are generated by the respective Branch Accounts. The Branch Head should review the credit notes with respect to:

  • Period 
  • Amount 
  • Calculations 
  • Reasons 
  • Approval 
If the value of a Credit Note is of a substantial amount, as may be decided by the Company, the Credit Notes should be approved by the SM-S&D at HO.

In case of any doubt,

a clarification should be obtained from the SM-S&D at HO at the Head Office. In the last week of each month (or any other accounting period, as the Company may decide from time to time) the accountant should process the credit notes.

The Credit Notes along with the supporting should be defaced and stored for future reference.


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