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Discussion Groups / English Usage / October 2008a credit on an invoice
I'm in a bit of a fix regarding the word "credit". The sentence goes: X will reimburse Y for the security deposits associated with the corporate apartments, and the amount paid will be applied back as a credit in the final month's invoice. Similarly, all other Y project expenses with regards to Project Z paid directly by X (e.g. local mobile phones) will be applied as a credit towards each month's invoice. Does that mean that the amounts paid will be added (credited) to the invoice amount? Thank you, Kamil >I'm in a bit of a fix regarding the word "credit". > [quoted text clipped - 8 lines] >Does that mean that the amounts paid will be added (credited) to the invoice >amount? This definition of "credit" probably applies here: AHD: 10. Accounting. a. The deduction of a payment made by a debtor from an amount due. That would mean the amount is subtracted from (credited as already paid) the invoice amount. However, some of the context is missing. I'm guessing that Y is billing X, but X is paying some of Y's expenses directly; those amounts paid directly by X will be subtracted from Y's invoice or bill to X.  SignatureJohn > I'm in a bit of a fix regarding the word "credit". > [quoted text clipped - 12 lines] > > Kamil No, it means the amount will be taken off. People often get confused by debits and credits. An invoice is, among other things, a notice that a supplier has charged a customer's account for goods or services. In the supplier's books of account a charge is represented by a debit in the customer's account. A credit on an invoice is then a notification that the supplier has made an allowance against charges for some reason. The (monthly) statement sent by the supplier is a copy of the customers account in the supplier's books and will show the accumulation of the invoices received less any payments received. In the customer's books of account everything is reversed. The customer credits the supplier's account for items received and debits it for payments made. SignatureMike Page Google me at port.ac.uk if you need to send an email. >> I'm in a bit of a fix regarding the word "credit". >> [quoted text clipped - 15 lines] >No, it means the amount will be taken off. People often get confused by >debits and credits. I most certainly did when I first started work as a programmer some decades ago. A credit, to me, was something *given* to me; a debit something *taken away*. Whereas in the PL/I programming language I was using, "CR" and "DB" can be used to indicate sign in some contexts - CR is negative and DB positive. It took me several weeks to get that straight in my head, and even then, on a couple of occasions I got caught out by bank balance slips from ATMs using "CR" to tell me I was overdrawn rather than (as my mind automatically translated) "in credit". Ultimately, as you effectively said in the words following the above, it's about realising that every transaction is a credit seen from one end and a debit from the other, and understanding from whose or from what persepective a document or report is being drawn up. An invoice is a document from the perspective of the firm producing it ("this is our understanding of the monies that you owe us") - so a credit to an invoice is a reduction in the total. Cheers - Ian Ian Noble filted: >>No, it means the amount will be taken off. People often get confused by >>debits and credits. [quoted text clipped - 8 lines] >overdrawn rather than (as my mind automatically translated) "in >credit". It's taken me a long time to come to terms with the Excel spreadsheet functions for amortization...if I make a financed purchase for a positive amount and pay a positive interest rate on it, why are all the payments negative?...r SignatureLittle-known fact: About 2% of the famous quotations credited to "Anonymous" were actually originated by Jasper D Anonymous, a 14th-century maker of carriage wheels. > Ian Noble filted: >> [quoted text clipped - 10 lines] >>overdrawn rather than (as my mind automatically translated) "in >>credit". > It's taken me a long time to come to terms with the Excel spreadsheet functions > for amortization...if I make a financed purchase for a positive amount and pay a > positive interest rate on it, why are all the payments negative?...r Because what you bought was a positive amount credited to your account, and your payments for it will be debits to be subtracted from your account. SignatureChris Malcolm >I'm in a bit of a fix regarding the word "credit". > [quoted text clipped - 10 lines] > >Thank you, It means that the security deposit amount will be deducted from the final month's invoice amount. "Credit", in this case, means "deducted". SignatureTony Cooper - Orlando, Florida >>I'm in a bit of a fix regarding the word "credit". >> [quoted text clipped - 16 lines] > final month's invoice amount. "Credit", in this case, means > "deducted". Thank you all! Kamil |
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