Debit Note

A debit note is a document used by a vendor/seller to the buyer to inform the

current debt obligations.
While debit notes are similar to an invoice, they are not necessarily the
same. Invoices can be used to show a sale or a transaction and may be sent
preemptively to the purchaser for the transaction of any sort of goods or
services. Debit notes or debit receipts cannot, and are generally used to
show returns or an addendum that has already occurred. They are a form of
documentation used for these specific purposes.
While an invoice cannot take the place of a debit note, a debit note can be
used as an invoice if the provisions are clearly outlined. This can be a rare
occurrence, however, and may only be used for specific circumstances that
are beyond the realm of traditional business and accounting operations.

Credit note:
A credit note is a legal document issued by the seller of goods and/or services
to the buyer against a previously recorded invoice

Ex- To illustrate, consider a scenario where a company, DFG Ltd., sells 10

products worth £20,000 to buyer ‘Z’ and issues an invoice against it. However,
on receiving the goods, Z finds manufacturing defects in two products and
returns them. Thus, DFG Ltd. then issues a credit note to the tune of £4,000
acknowledging the return of goods.

Bill of Exchange
 A key document in a documentary collection is the bill of exchange or draft,
which is a formal demand for payment from the exporter to importer
 A bill of exchange often includes three parties—the drawee is the party that
pays the sum, the payee receives that sum, and the drawer is the one that
obliges the drawee to pay the payee.
 A bill of exchange is used in international trade to help importers and
exporters fulfill transactions.
 While a bill of exchange is not a contract itself, the involved parties can use
it to specify the terms of a transaction, such as the credit terms and the rate
of accrued interest.

 How Do Associate Companies Work?

o If a firm invests in a smaller company, but obtains a minority stake or
noncontrolling interest in it, the company in which they have invested
is called an associate company.
o An associate company may be partly owned by another company or
group of companies. As a rule, the parent company or companies do
not consolidate the associate company’s financial statements, as is the
case with a subsidiary (where the parent company usually
consolidates the financial statements). Typically, the parent company
records the associate company’s value as an asset on its balance sheet.

 What does Said to Contain (STC) mean?

 Said to Contain (STC) is a notation used on shipping
documents to indicate that the contents of a shipment are
described by the shipper or consignor, but the carrier has
not verified the accuracy or completeness of the
description.
 The reason it is important for the carrier is that in an FCL shipment,
the shipping line does not get involved in the packing of the container
and therefore does not know “what (the cargo)” and “how many / how
much (weight/packages)” of the what is packed inside the container..
 “1×20′ container Said To Contain 750 x 25 kg bags of Sugar”, Sugar
is the “what” and and the 25 bags amounting to 18,750 kgs (750×25)
is the “how many / how much” of the Sugar is packed inside the
container..