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The revenues help me make enough money to help me pay for the cost of running this blog and providing you with awesome and free content. To help me operate this site, I earn advertising revenues by having ads displayed on my blog. You will find different types of amazing content such as definitions, guides, reviews, comparisons, and other types of articles intended to provide you the knowledge you need to make decisions. In the event that you have already paid the total amount of the invoice without offsetting your credit memo, you can either ask for a refund or use that credit against future invoices.ĪBOUT USIncorporated.Zone is a blog aimed at providing useful information about business, law, marketing, and technology. In essence, you can use your credit memos to offset the total amount payable by your organization. If you don’t keep track of how much credit has been issued, you will inadvertently pay $50,000 thereby losing $5,000 to spend in other areas of your business and also your suppliers may take a long time before realizing the mistake and reimbursing you the funds. Not only it’s important to know how much you should pay your vendors but keeping track of your accounts payable will also help improve your cash flow.įor example, if your company is issued invoices from its suppliers during a given period for $50,000 and where there are credit memos issued totaling $5,000, you’ll actually need to pay $45,000 (instead of $50,000). Companies should keep track of how much credit they are issued by their vendors and suppliers so they can accurately determine how much they owe.
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