MARG ACADEMY

Many times in business it happens that your supplier sell you goods/stock not at the actual price of that product but at a higher/lower price without realising this. So to make a correction in the price listed when modification in bills/challans issued for purchases is not possible then these entries are recorded under price difference purchases. Your supplier issue a debit note if the actual price is less than price quoted and vice versa.

THE PROCESS TO BE FOLLOWED TO CREATE A CREDIT NOTE ENTRY  AND ITS MODIFICATION REMAINS THE SAME AS DISCUSSED ABOVE.

Similarly, if you have received goods/stock at a higher price then you would issue a debit note (or for modification purposes) to your supplier and the entry would be recorded under debit note .