Debit/Credit Notes Clause Samples
The Debit/Credit Notes clause establishes the process by which parties can formally adjust previously issued invoices or accounts, either to correct errors or to reflect changes in the value of goods or services supplied. In practice, this clause allows one party to issue a debit note to request additional payment or a credit note to acknowledge a reduction in the amount owed, such as for returned goods or overcharges. Its core function is to ensure accurate and transparent financial records between parties, thereby preventing disputes and maintaining proper account reconciliation.
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Debit/Credit Notes. Debit/credit notes may be raised for any other amount due and payable by Shipper or Transporter under a GTA or as a result of any correction to any prior Fortnightly Invoice, showing details of the calculation and any Interest accrued and unpaid. Such debit note shall be paid within the four (4) Business Days of the receipt of such debit note. In case Transporter issues a credit note in respect of a GTA, Shipper may adjust the same in the following Fortnightly Invoice payment in respect of such GTA. If such carry over and adjustment is not possible on account of expiry or termination of such GTA, such dues shall be paid forthwith by Transporter to Shipper. In case Transporter issues a credit note, Shipper shall not be entitled to raise a debit note corresponding to such credit note.