Bank Credit Advice

A bank credit advice is a notification that the bank has credited an amount to the customer’s account.

The credit may represent a customer receipt, loan proceeds, refund or another incoming amount. A bank credit generally increases the customer’s bank asset and is recorded as a debit to Bank in the customer’s books. The corresponding account depends on the source; an incoming amount is not automatically revenue.

Used to verify incoming transfers, allocate customer receipts and investigate unidentified credits.

A credit advice confirms AED 20,000 received against a customer’s outstanding invoice. The company debits Bank and credits Accounts Receivable for AED 20,000.

Supports accurate receipt allocation and prevents loans, refunds or customer settlements from being incorrectly classified as new revenue.