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How to issue an Accounting note (debit-endorsement note) in the system

Last updated: 2024-04-23

There are situations where some transactions do not need to be documented using invoices. Instead, a document that allows for charging and simultaneously acknowledging the charge through the other party is an accounting note, commonly known as a debit-endorsement note.
 

What is an Accounting note (debit-endorsement note)?

 

An accounting note, which serves as an accounting document, is used in situations where it is necessary to document transactions that are not subject to value-added tax (VAT).

Such situations may include, for example:

  • Charging the debtor with interest on unpaid obligations;
  • Contractual penalty for delayed contract performance;
  • Claiming compensation from an insurer;
  • Correction of errors in previously issued accounting documents.

The accounting note can also serve as a basis for entries in accounting books. However, for this to happen, it must contain certain information required for accounting evidence, in accordance with the Accounting Act.
 

Required Elements of an Accounting note

 

For an accounting note to be recognized as a basis for entries, it must include:

  1. Identification that it is an accounting note;
  2. Specification of its subtype (debit/endorsement);
  3. Identification number;
  4. Date of the transaction;
  5. Specification of the parties involved in the transaction (Issuer/Recipient);
  6. Description of the transaction and its value.

 

How to issue an Accounting note in InvoiceOcean?

  To be able to issue this type of document, you need to activate it in the account settings. To do this:
1. Go to the Settings > Account Settings > Your account;
2. In the Additional documents to issue section, find the option Accounting notes;
3. Check the checkbox next to this option, and then Save the changes.
 


4. Then, on the main toolbar, click on the Income tab, and from the list, select Accounting notes.
 


 
5. On the list, click the Add new button to create a new accounting note.


 
6. In the Subtype field, you can choose whether you want to create an Endorsement Note or a Debit Note.
 

7. Complete the required data and confirm the document creation by clicking Save.
 

If you choose the Endorsement Note option, you will be the Recipient. Meanwhile, when issuing a Debit Note, your details will be visible on the Issuer's side.

A correctly configured accounting note template will also display banking details, including the SWIFT code.



It is important to note that the accounting note is an additional document that can only be used in certain situations. It cannot replace invoices or credit notes, through which purchased goods or services are transferred to the proper buyer. The accounting note should be prepared in two copies. Amounts in foreign currencies should be converted into the proper currency at the exchange rate applicable at the time of the business transaction.

 


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