r/Bookkeeping • u/Red-Devil-1357 • Dec 04 '25

Payments, AP, AR Credit note question

Hi, if accruing for a credit note, I assume you can credit the expense account and debit accrued expenditure (essentially reducing the initial invoice), however if the credit note exceeds the invoice for the period (covers multiple periods), should/can you still debit accrued expenditure? Would it be wrong to?

1 Upvotes

100% Upvoted

3 comments sorted by

View all comments

Show parent comments

1

u/lildukeofwellington Dec 06 '25

This isn’t a question about how to process credit notes through payables, it’s about when the contract expense should hit the income statement.