Bank Debit Advice

A bank debit advice is a notification that the bank has debited an amount from the customer’s account.

The debit may relate to a transfer, bank fee, loan repayment or another transaction. The advice describes the bank’s action; the accountant must identify the underlying purpose. A bank debit generally reduces the customer’s bank asset and is therefore recorded as a credit to Bank in the customer’s books.

Used to verify withdrawals, record previously unrecorded bank charges and match bank debits to supporting documents.

A debit advice confirms a bank fee of AED 100. Ignoring tax for illustration, the company debits Bank Charges AED 100 and credits Bank AED 100.

Provides evidence of bank deductions and prevents confusion between the bank’s debit terminology and entries in the customer’s ledger.