21 Exercises Invoice of due and credit

Welcome to this article with the aim of helping you with corrected exercises on settlement operations (invoice of due and credit in exercise) from the Operational Management subject of the BTS MCO.

If you would like to first review the course on the same theme, I invite you to read my article The 5 Commercial Documents to Remember

The 21 corrected exercises on invoicing cover due invoices, credit invoices, invoice reductions, invoice increases and also the calculation of discounts.

You will also find corrected management exercises on short-term financing as well as on overdraft calculation techniques.

Here is the list of 21 corrected exercises for invoices and credit notes:

Invoice of Due and Credit corrected exercise No. 1: Case Bine

States

The Bine business unit provides you with certain elements in order to present the invoice that it will send to its client “La Téléphonique”:

• Goods: €3;
• VAT rate: 20%;
• Discount: 2%;
• Discount: 1,4%;
• Shipping costs: €325 excluding VAT;
• Discount: 5%.

Work to do

1. Prepare the invoice addressed to its client, the company “La Téléphonique”.

Proposed correction

1. Establish the schematic invoice addressed to its client, the company “La Téléphonique”.

Invoice of Due and Credit corrected exercise No. 2: Blage case

States

During year N, the Casblage business unit carried out commercial operations with its client Lefile.

The total turnover is €137 including tax (VAT rate: 400%).

The Casblage company usually gives a discount to this loyal customer.

You will find information on calculating the discount in Appendix 1.

Annexe 1

Annexe 1  Table to fill in

Work to do

1. Complete Appendix 2.
2. Prepare the commercial document following this rebate calculation.

Proposed correction

• Complete Appendix 2.

• Prepare the commercial document following this rebate calculation.

Invoice of Due and Credit corrected exercise No. 3: Wheat Case

States

You have all the invoices for the month of June N from the Casblé company.

This generally offers a discount to its client Tuyaux because it achieves a substantial turnover with it.

Annexe 1

Work to do

Using Appendix 1:

1. Determine the amount of the discount granted to the Pipes customer.
2. Create the credit note following the calculation of this discount.

Proposed correction

• Determine the amount of the discount granted to the Pipes customer.

First, you must determine the amount of turnover that will serve as the basis for calculating the discount.

Calculation of turnover excluding tax and net of reductions:

1 + 000,00 + 3 – 325,00 = €2 excluding tax

Now that we have calculated the net turnover excluding tax, we can construct the table in order to calculate the amount of the discount.

To complete the table you must share the turnover as follows:

• the portion of turnover less than 1 euros.
• the portion of turnover between €1 and €000, i.e. €4.
• the remaining part, that is to say the surplus between the amount of net turnover excluding tax and what has already been taken into account.

• Create the credit note following the calculation of this discount.

Here is the credit note that must be presented after calculating the discount.

You must remember to include VAT on the invoice.

Invoice Due and Credit Corrected Exercise No. 4: Marade case

States

The “Complaints” department of the Casmarade company is sending you the following information in order to produce the invoice of 15/03/N that it will send to the customer Soncopain:

Invoice No. 452 of 24/02/N:

His friend is dissatisfied with part of the order, and as a result, he returns goods for an amount of €850.

It is also specified that payment of invoice no. 452 must be made on 30/03/N.

Work to do

1. Prepare the commercial document dated 15/03/N which will be sent to Soncopain following the return of goods.
2. How much will Soncopain have to pay at the end of March N?

Proposed correction

• Prepare the commercial document dated 15/03/N which will be sent to the customer Copain following the return of goods.

 This is a credit invoice. Therefore, do not forget to include the discounts (in percentage) that appeared on the initial invoice.

• How much will customer Soncopain have to pay at the end of March N?

The credit note is deducted from the initial invoice. The actual amount that the Copain customer will pay is:

Invoice Due and Credit Corrected Exercise No. 5: Maraderie case

States

The Casmaraderie business unit has been carrying out commercial operations with its client Sompote for several years.

However, in the last billing, Casmaraderie forgot to grant a 3% discount and a 1,5% rebate.

These reductions are customary between the two partners.

In addition, we provide you with details of the latest invoice in Appendix 1.

Annex 1 :

Work to do

1. Prepare the commercial document that Casmaraderie must send to Sompote.

Proposed correction

• Prepare the commercial document that Casmaraderie must send to Sompote.

 This is a credit note due to the omission of commercial discounts.

(1): (1 – 450) x 43,50%

Therefore, this amount of 77,52 euros will be reduced on a future invoice.

Invoice Due and Credit Corrected Exercise No. 6: Rabine case

States

The Rabine business unit provides you with certain elements in order to present the invoice that it will send to its customer:

• Goods: €3;
• VAT rate: 20%;
• Discount: 2%;
• Discount: 1,4%;
• Shipping costs: €325 excluding VAT;
• Discount: 5%.

Work to do

1. Prepare the invoice addressed to its client, the Fusil company.

Proposed correction

• Prepare the invoice addressed to its client, the Fusil company.

Invoice Due and Credit Corrected Exercise No. 7: Zanier case

States

The Zanier business unit sends you the following information in order to establish the invoice that it will send to its customer.

• Goods: €4;
• VAT rate: 20%;
• Discount then rebate: 3% and 2%;
• Shipping costs: €480 incl. VAT;
• Deposit: €1.

Work to do

1. Present the invoice that the Zanier company will have to send to its client.

Proposed correction

1. Present the invoice that the Zanier company will have to send to its client.

Invoice Due and Credit Corrected Exercise No. 8: Bouchard Case

Mr. Bosch, head of the CasBouchard business unit, consults you on 2 financial points:

1. the investment of a capital of €10 at a rate of 500% per year for 5 months.
2. the reimbursement of €4 in 800 months, it being understood that the ideal would be to pay immediately.

Work to do

1. Regarding the first point: what will be the total amount obtained at the end of 9 months?
2. Regarding the second point: what would be the amount of the reimbursement to date at the rate of 4% per year?

Proposed correction

• Regarding the first point: what will be the total amount obtained at the end of 9 months?

We are talking about earned value here because we are looking for future value. We can answer this in two different ways.

First method using the following formula: Original value × Interest rate × Prorata temporis

Using the calculations of simple interest, we have: 10 × 500 × (0,05 ÷ 9) or €12

Second method:

You can answer this question using the formula of compound interest with the following formula:

(C × t × n) ÷ 36

With C the initial capital, t the interest rate and n the number of days of investment.

So we have :

10 + [500 × (10 days × 500 months) × 30] ÷ 9 = €5

• Regarding the second point: what would be the amount of the reimbursement to date at the rate of 4% per year?

For this second point, it is a question of calculating a current value because it is asked to calculate “to date”.

There are two ways you can do this.

First solution: We will deduct the interest from the reimbursement, so we have:

4 – [(800 × 4 × 800 days) ÷ 4] = €90

The second possibility is as follows:

You can directly apply the update formula:

4 × (800 + 1)^{- (3/12)} £4

Interpretation of the result:

If Mr Boche wishes to anticipate the reimbursement, he will have to pay the sum of €4 or €752 depending on the calculation made.

If you have difficulty understanding the concepts of current value and acquired value, I strongly encourage you to read the article The Choice of Investments.

Invoice Due and Credit Corrected Exercise No. 9: Boteur Case

States

Mr. Boteur gives you two drafts, the characteristics of which are defined in Appendix 1.

You also have Annex 2 concerning the banking conditions that you have accepted with your bank.

Appendix 1: Portfolio of commercial paper

Appendix 2: Banking conditions

Work to do

1. Calculate the net amount received on draft No. 48
2. Calculate the net value received on draft No. 52, distinguishing the amount of the agio.
3. Determine the total net amount credited to the business unit account.

Proposed correction

• Calculate the net amount received on draft No. 48

First, you need to calculate the amount of the commission including tax.

Commission excluding tax: €15

Commission including tax: €15 × 1,2 or €18.

The net amount of the draft received on draft No. 48 is: €5 – €800 = €18.

• Calculate the net value received on draft No. 52, distinguishing the amount of the agio.

First, you must determine the number of days between the day of the discount and the expected due date.

The calculation is done month by month with the exact number of days according to the month.

So we have:

• for September: 30 – 8 = 22 days
• October: 31 days
• November: 30 days
• December: 31 days

or in total:

22 + 31 + 30 + 31 = 114 days

Discount calculation

We apply the following formula: (VN × rate × n) ÷ 360

With VN, the nominal of the effect, the rate for the discount rate and n, the number of days.

So we have:

(15 × 900 × 0,06) ÷ 114 = €360

Calculation of bank commissions

Bank commissions excluding tax: €12

VAT on bank commissions: €12 × 20% = €2,40

Bank commissions including tax: €12 + €2,40 = €14,40

Calculation of endorsement fees

The calculation is the same as for the discount.

We therefore have: (15 × 900 × 0,01) ÷ 114 = €360

Calculation of the agio

This is the sum of the bank withdrawals.

We therefore have: 302,10 + 14,40 + 50,35 = €366,85

We can finally calculate the amount of the net value, this is the difference between the nominal value and the amount of bank charges:

€15 – €900 = €366,85

• Determine the total net amount credited to the business unit account.

To answer this question, we need to add up the net effects of all the “costs.”

So we have: 5 + 782,06 = €15

Interpretation of the result

The net amount received credited to the company's bank account is €21.

10/ Corrected exercise on calculating bank charges

States

The Casbriolet business unit is experiencing some cash flow difficulties.

The manager, Mr. Kä, consults you to help him find solutions. Thus, you suggest that he use his portfolio of commercial paper.

This includes several effects including draft No. 48. The characteristics of this are as follows: nominal: €20, due on 800,00/31/N.

The bank account of the business unit is at CIC and is located in Dijon, of which you will find an extract of the banking conditions attached. By mutual agreement, you therefore decide to discount it on 10/10/N.

Appendix 1: Banking conditions.

• Discount rate: 7,25% per year;
• Flat rate commission: 0,45% of the nominal amount.

Work to do

1. Calculate the amount of the overdraft.

Proposed correction

1.  Calculate the amount of the overdraft.

First, you need to determine the number of days between the discount date and the expected due date. So:

For the month of October: 31 – 10 or 21 days For the month of November: 30 days

For the month of December: 31 days Total: 21 + 30 + 31 = 82 days

Discount calculation

We apply the following formula: (C × t × n) ÷ 36

With: C: the nominal, t: the discount rate and n: the number of days.

So we have: (20 × 800 × 7,25) ÷ 82 = €36

Calculation of the flat rate commission

Commission excluding tax: 20 x 800,00% = €0,45

VAT on commission: 93,60 x 20% = €18,72

Commission including tax: €93,60 + €18,72 = €112,32

Calculation of the agio

The amount of the agio is: €343,49 + €112,32 = €455,81

11/ Corrected exercise on commercial effect

States

The Casdrage business unit specializes in the manufacture and distribution of specialized equipment for cinema professionals.

Casdrage holds a portfolio of bills of exchange, the details of which are given in Appendix 1. In Appendix 2, you will find an extract of the banking conditions.

Following the receipt of an unexpected invoice, Casdrage would like to know the amount it could recover if it had to discount all the bills in the portfolio.

Annexe 1 :

Annexe 1 :

Work to do

1. Calculate the total net amount received that will be credited to the Casdrage company account.

Proposed correction

We can answer this question in several steps:

1. Calculation of the number of days
2. Calculation of the discount amount
3. Calculation of commissions
4. Calculation of the net amount

Calculating the number of days: Effect 345

February: 28 – 14 = 14 days

March: deadline: March 14, therefore 14 days

Bank day: 1 day

Total: 29 days

Calculating the number of days: Effect 098

February: 28 – 14 = 14 days

March: deadline: March 27, therefore 27 days

Bank day: 1 day

Total: 32 days

Calculating the number of days: Effect 519

February: 28 – 14 = 14 days March: 31 days

April: deadline: April 4, therefore 4 days

Bank day: 1 day

Total: 50 days

Calculation of the discount amount: Effect 345

We apply the formula (C × t × n) ÷ 36, which is:

(42 × 000 × 7,80) ÷ 29 or €36

Calculation of the discount amount: Effect 098

(17 × 500 × 7,80) ÷ 32 or €36

Calculation of the discount amount: Effect 519

(56 × 000 × 7,80) / 50 or €36

Calculation of the flat rate commission

€12 excluding VAT × 20% or €2,40 VAT, giving an amount including VAT of €14,40

Calculation of commission per effect

There are 3 effects so we have:

3 × €1,50 or €4,50

Now we can actually answer the question. To do this, we need to add up all the effects and subtract the total discount and all the commissions:

(42 + 000 + 17) – (500 + 56 + 000) – (263,90 + 121,33) or
a net amount of €11.

Invoice Due and Credit Corrected Exercise No. 12: Dabort Case

States

The Dabort company located at 15 rue des Chouettes in the 18th arrondissement of Paris ordered 15 pairs of women's boots on April 79,00 at a unit price excluding tax of €XNUMX.

Following a defect on certain pairs, on April 22, N, the Dabort company returned 3 pairs to its supplier.

This one, the Pastor company resides at 14 rue des Peupliers in Drancy.

Work to do

1. Present the credit note relating to the return of goods.

Invoice Due and Credit Corrected Exercise No. 13: Dabort Case (commercial reduction)

States

The Dabort company located at 14 rue des Alouettes in the 14th arrondissement of Paris ordered 8 dresses on 04/85/N at a unit price excluding tax of €59,00.

The invoice also includes a discount of 2,5%, as well as shipping costs of €50 excluding VAT.

Work to do

1. Present the invoice addressed to the customer Dabort on 14/04/N.

Proposed correction

Invoice of Due and Credit Corrected Exercise No. 14: Dabord Case

States

The Dabord company located at 4 rue des Machins in the 8th arrondissement of Paris ordered 8 coats on 04/150/N at a unit price excluding tax of €179,00.

Following a defect on 1/3 of the products ordered, the supplier issues an invoice for the returned products.

Work to do

1. Present the credit note dated 12/04/N following the return of goods.

Proposed correction

In this exercise, you need to change the base quantity since only 1/3 is returned. So you need to divide 150 by 3 to get the quantity returned by customer Dabord.

Invoice of Due and Credit Corrected Exercise No. 15: Dabord Case

States

The Dabort company located at 14 rue des Alouettes in the 14th arrondissement of Paris ordered 3 boxes of aperitifs on 06/18/N at a unit price of €2,49 excluding VAT.

The invoice shows two discounts: 2,5%, as well as a second discount of 1%.

Work to do

1. Present the invoice addressed to the customer Dabort on June 10 N.

Proposed correction

Invoice of Due and Credit Corrected Exercise No. 16: Dabord Case

States

The Dabort company located at 15 rue des Chouettes in the 11th arrondissement of Paris ordered N 18 pairs of women's trousers on April 15 at a unit price excluding tax of €79,00.

Work to do

1. Present the invoice dated 19/04/N.

Proposed correction

Invoice of Due and Credit Corrected Exercise No. 17: Dabord Case

States

The Dabort company located at 15 rue des Chouettes in the 11th arrondissement of Paris ordered N 18 women's trousers on April 15 at a unit price excluding tax of €79,00. The invoice shows a 3% discount and a 2% rebate.

Work to do

1. Present Doit's invoice dated April 19 N.

Proposed correction

Invoice of Dues and Credits Corrected Exercise No. 18: Dabort Case (Shipping + Increase)

States

The Dabort company located at 15 rue des Chouettes in the 11th arrondissement of Paris ordered N 18 pairs of women's trousers on April 15 at a unit price excluding tax of €79,00.

The invoice shows shipping costs of €50 excluding VAT and an increase of 5% due to a new tax.

Work to do

1. Present the invoice dated 19/04/N.

Proposed correction

Invoice of Due and Credit Corrected Exercise No. 19: Dabort Case (Transport + Increase)

States

The Dabort company located at 15 rue des Chouettes in the 11th arrondissement of Paris ordered N 18 packs of water on April 50 at a unit price of €3,45 excluding tax.

The invoice shows shipping costs of €25 excluding VAT and an increase of 3%.

Work to do

1. Present the invoice dated 19/04/N.

Proposed correction

Invoice of Dues and Credits Corrected Exercise No. 20: Dabort Case (2 discounts)

States

The Dabort company located at 15 rue des Chouettes in the 11th arrondissement of Paris ordered N 11 men's vests on April 15 at a unit price excluding tax of €129,00.

The invoice shows a first discount of 1,5% and a second of 2,5%.

Work to do

1. Present the invoice dated April 13 N.

Proposed correction

21/ Corrected exercise on commercial effect: Discount calculation

States

On 17/08, supplier F delivers a discounted bill to the bank with a value of €25 due on 000/31.

The discount rate is 6,89% per annum. The bank charges a minimum of 6 days for a discount and two additional banking days.

Work to do

1. Calculate the amount of the effect.

Proposed correction

First, it is necessary to calculate the number of days between the delivery date and the due date. To do this, we calculate the exact number of days for each month.

From 17/08 to 31/10:

August: 31-17=14 days

Sept.: 30 days

Oct.: 31 d

Minimum required: 6 days Bank days: 2 days

A total of 83 days.

Then we apply the following formula to calculate the discount: (Nominal value × discount rate × number of days) ÷ 36

(25 × 000 × 6,89) ÷ 83 = €36

The amount of the discount is therefore €392,34, it will be deducted from the nominal value.