Receivables – Different Type of Invoices
Receivables – Different Type of Invoices
Invoice : An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. A document that you create that lists amounts owed for the purchases of goods or services, any tax, freight charges and payment terms.
Credit Memo : A document that partially or fully reverses an original invoice. A credit note lists the products, quantities and agreed prices for products or services the seller provided the buyer, but the buyer returned or did not receive. It may be issued in the case of damaged goods, errors or allowances. In respect of the previously issued invoice, a Credit Memo will reduce or eliminate the amount the buyer has to pay. Note: A Credit Memo is not to be substituted as a formal document. The Credit Memo rarely contains: PO #, Date, Billing Address, Shipping Address, Terms of Payment, List of products with quantities and prices. Usually it references the original Invoice and sometimes states the reason for issue.
This is received if the goods are incomplete, damaged, or incorrect; customers may also receive one if they paid too much money, or if they had been overcharged.
Debit Memo : A vendor may issue a debit memo to a customer if he undercharged the customer. Further, if the customer received defective goods, he may return the damaged merchandise to the vendor along with a debit memo.
ChargeBack : A new debit item that you assign to your customer when closing an existing, outstanding debit item.
Deposit : A type of commitment whereby a customer agrees to deposit or prepay a sum of money for the future purchase of goods and services.
Guarantee : A contractual obligation to purchase a specified amount of goods or services over a predefined period of time.
Bills Receivables : A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). Bills receivable are often remitted for collection and used to secure short term funding. A written evidence of debt that is payable to the holder; a promissory note or an acceptance (a bill of exchange that has been accepted) is in the hands of a person to whom it is payable a bill receivable.
