The FAO Blog shared a process map for a credit note process in the last post.

http://faoblog.com/processes-ar-billing-other-sub-processes-credit-note-workflow/

Thanks to our readers, this post was really a hit. The number of visitors to the site evidenced that.

Now, similar to a credit note, you may be expected to issue debit notes as well. This implies that you expect your client’s customer to pay more than just the value of his purchase. In what situations?

  • One key reason for issue of a debit note is incorrect / excess billing
  • Your client  may charge separately for transportation and freight
  • There could be a clause to raise a debit note for insurance, port charges and the like
  • Your client’s customer could have asked for added annual maintenance contract
  • He may end up enhancing the scope of warranty or maintenance contract
  • He might subsequently ask for on-site services for your clients wares
  • Some sales commissions could be shared by your client’s customer

There are numerous situations which may arise, based on the core business of your client. You can utilize some of this content to actually negotiate additional work for your shared service center.

 

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