Credit notes 3104

  • Hi, just a quick question: if a credit note is issued on a customer account to cancel an invoice that has already been paid, is it a breach of SOX not to refund the money but to leave it on the account for use against future invoices? Our policy is that the customer has to give us written authorization before we clear the credit note on their account against any invoice; however, provided the above policy is applied, I am not aware of this being a SOX breach? Many thanks in advance.

  • No SOX issues as long as the actions follow your Company’s policies on refunds of credit balances and the credit balance is carried on the balance sheet.

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