What is an advice note? Is it an official document or a regular form?

In accounting, there are a variety of documents, among which you can find such a thing as an advice note. Is it an official document or just a report paper? Consider this issue in this article, as well as find out what types of advice are.

The concept of

The note is one of the most important documents in the accounting department, which is an official paper that proves the conduct of a particular banking transaction. In fact, it can be called an invoice, which confirms the bank transfer or proves its refusal.

From the Italian language avviso can be translated literally as "notice".

Advice to the buh. Accounting

An advice note is a document that can be used both in the business sphere and in the accounting. These can be copies of a payment order, a memorial warrant and other settlement documentation.

This document is an official notice showing the performance of a settlement or commodity transaction. It is sent from one side to the other. Financial organizations thus report on a debit or credit record on the account, on account balances, on the issue of a receipt, on the opening of a letter of credit, on the payment of a transfer, and so on.

Business practice implies such notices in order for the parties to inform each other about the actions taken with the goods and other values.

An advice in accounting is a document issued on a special form, where the number, date, the operation to be performed, the amount, account number, sender and addressee should be indicated.

Methods of sending a document are:

• Postal;
• Electronic (must be certified with a digital signature).

In the banking sector, this notification is frequently used, confirming the inter-branch turnover of funds. Such a document is necessary if the company has independent enterprises. The notification in this case can confirm and sum up the results on the overall budget of the whole organization.

There are such types of advice notes as:

• Debit (instructions for writing off money);
• Credit (instruction for crediting funds).

The method of document circulation distinguishes notes:

• Direct (notification, not requiring an answer);
• The opposite (a document that confirms the completion of a financial transaction).

Debit note in accounting

A debit memo is an official document that contains information that the addressee must have a certain amount of money from the organization that sends this notice. The amount must be written in the document.

It is worth saying that such a document is issued very rarely. Increasingly, accountants write out invoices.

But all the same, there are situations when it is necessary to make a debit memo. For example, if it is a matter of sending a document inside a firm that does not confirm the sale of services or goods (you can not use the invoice here).

Also this type of notification must be used without fail, if it is a question of international transactions. All because the document presupposes the assignment of foreign trade operations, which is carried out in accordance with the established form.

Sometimes organizations can use consolidated advice from several debit documents to optimize settlement transactions.

The debit notification is issued on the prescribed forms, which contain the following requisites:

1. Number and date of discharge.
2. Account number and amount.
3. What operation is performed.
4. Name of the sender and his requisites.
5. Name of the addressee and his requisites.
6. Additional Information.

An advice note is a document that requires the completion of a financial transaction, so it must be sent:

• In two copies, when one of them remains in the company owed money, and the second - is sent back to the sender after the seals and signatures are affixed;
• In three copies, when the calculations are carried out within the same firm.

Credit memo

In addition to debit, in the accounting dictionary you can find the concept of "credit advice". What is it and what are its features?

The document to be issued should contain the following instructions:

• What checks were accepted for payment;
• What is the total amount of checks;
• During what time the payment was accepted;
• Customer's signature.

A credit memo is a document that confirms the existence and size of the company's debt to the customer. That is, when the goods are delivered to the customer, an invoice is issued. If the customer returns the entire product or part to the supplier, the invoice must be completely or partially canceled by a credit notice.