Article #6 |
DEBTOR SYSTEM |
Period | Definition | DCP=7 | DCP=30 |
B0 | Balance on "Current" | Current | Current |
B1 | Balance on 1 x DCP days | 7 days | 30 days |
B2 | Balance on 2 x DCP days | 14 days | 60 days |
B3 | Balance on 3 x DCP days | 21 days | 90 days |
B4 | Balance on 4 x DCP days | 28 days | 120 days |
B5 | Balance on 5 x DCP days and more | 35 days and more | 150 days and more |
INVOICE | Invoice, usually a purchase invoice | DEBIT - Increase Balance |
PAYMENT | Payment made to us by debtor | CREDIT - Decrease Balance |
DEBIT JOURNAL | Correction | DEBIT - Increase Balance |
CREDIT JOURNA | Correction | CREDIT - Decrease Balance |
INTEREST | Interest charged for unpaid overdue invoices | DEBIT - Increase Balance |
B/F | Brought Forward | DEBIT - Increase Balance |