Credit notes, credit memos and debit memos
Three different instruments in ClaimDS — a GST credit note you issue, a credit-memo draft you request from a vendor, and a debit memo from your ERP.
These three sound similar but are genuinely different in ClaimDS — different directions, different purposes, and only one of them is a GST tax document. Knowing which is which keeps your tax treatment straight.
The tax rules around these documents change and have conditions. This page describes how ClaimDS handles them; the authoritative treatment for your situation should be confirmed with your tax advisor. This is general guidance, not tax advice.
GST credit note — you issue it
When you settle a rebate you owe a customer, ClaimDS produces a GST credit note. You (as supplier) issue it to the customer; it's a tax document that reduces your output tax, with the particulars the law requires. It's the only one of the three that's GST-bearing. See GST credit notes explained.
Credit-memo draft — you request it
When you settle a rebate a vendor owes you, ClaimDS produces a credit-memo draft instead. This isn't a tax document and you don't issue it — it's a request to the vendor to issue their own credit note. The vendor decides whether to accept it. ClaimDS never issues a credit note on the purchase side.
Debit memo — you record it
A debit memo is a transaction category in your business volume, recorded from your ERP. Where a credit memo decreases an amount, a debit memo increases it. ClaimDS records debit memos that come from your billing system; it doesn't issue them, and they're not a Section 34 GST event in themselves.
Why the distinction matters
The short version: on the customer side you issue a GST credit note; on the vendor side you request a credit memo; and a debit memo is just a transaction type you record. Mixing them up is where tax mistakes start.
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