Situation:
Invoice Value: $2000 (10 Drums)
Physically Received 8 drums worth $ 1800
Payment already done $2000 as LC was sight basis.
Supplier will not make any shipment for 2 drums.
Now what is the process of $200 recovery?
Need Urgent Help.
Debit Note and Credit Note
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Raihan
- Posts: 2
- Joined: Sun Oct 20, 2019 5:42 pm
- First Name: Raihan
- Last Name: Majumder
- Organization: Apex Footwear Ltd
- Filter: Two Plus Two =: 4
- Location: Dhaka
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Sanaur
- Posts: 20
- Joined: Mon Sep 16, 2019 11:01 am
- First Name: Mohammad Sanaur
- Last Name: Rahman
- Organization: XYZ
- Filter: Two Plus Two =: 4
- Location: Bangladesh
Re: Debit Note and Credit Note
Hi, I understand that this is beyond the scope of letter of credit as per UCP.
However, solution to this issue will vary depending on countries invloved (i.e. Customs and exchange control policies) and relationship between the buyer and seller (like, whether under same ownership, long business relationship) and, of course, nature of the event (fraud case or damage during shipment or production issue etc.)
In a simple case, seller may send another invoice with correct shipped quantity and remit the additional fund back to buyer's bank as seller not willing to ship further.
If it is an insurance event, pls arrange to claim as per due process.
If it is an temporary production capacity issue or availabily issue, seller may arrange third party shipment/sourcing of the same goods to the buyer to cover the short shipment.
Depending on the exchange control policies of the concerned countries, the issue may also be solved by issuing a debit note by the buyer.
Looking forward comments from others.
However, solution to this issue will vary depending on countries invloved (i.e. Customs and exchange control policies) and relationship between the buyer and seller (like, whether under same ownership, long business relationship) and, of course, nature of the event (fraud case or damage during shipment or production issue etc.)
In a simple case, seller may send another invoice with correct shipped quantity and remit the additional fund back to buyer's bank as seller not willing to ship further.
If it is an insurance event, pls arrange to claim as per due process.
If it is an temporary production capacity issue or availabily issue, seller may arrange third party shipment/sourcing of the same goods to the buyer to cover the short shipment.
Depending on the exchange control policies of the concerned countries, the issue may also be solved by issuing a debit note by the buyer.
Looking forward comments from others.