Hello all. New here but have a question. I am investigating a customer issuing us a credit memo as payment and was wondering if there was something from the AICPA or FASB that speaks to the issues with this. I already know the inherent issues with this as it pertains to the processes of my company but was interested in finding out what, if any, is the indusrty standard on this. Hope the description helps. Thanks.
USA Customer Credit Memo
- Thread starter DZACKERY
- Start date
In the usual case, you -as vendor - issue the credit memo to your customer for any of a variety of reasons (goods returned, adjustment of price, etc) Then when the customer pays you for the invoice related to the credit memo, they don't pay the full amount of the invoice as the balance is the credit memo owed to them. So - pretty basic and I doubt that this is the stuff of AICPA/FASB concern. What "inherent issues" concern you?
