Debtors Control - Credit Balance?

Q: Is it possible for a debtor to have a credit balance?

Comments for Debtors Control - Credit Balance?

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All debtors should have debit balance .
by: Anonymous

All debtors should have debit balance is ideal position to say.
All debtors should have debit balance and all creditor should have credit balance .

Debtors Control - Credit Balance
by: Anonymous

Yes, it's possible.

The reasons being one of the following:
* Debtor has overpaid
* Debtor has been passed a credit
* Receipt may belong to a different debtor account

Watch for the following:
* Debtor may have paid a deposit
* Debtor may have paid on a quote or pro-forma invoice

If that is the case - an invoice has not been generated.

Also be very careful to assume that debtors balances are correct. Always double check 1st before making any refunds or assuming that they don't owe you.

All credit balances should always be scrutinized.

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