Posted in Finance, Accounting and Economics Terms, Total Reads: 244
Definition: Credit Ticket
It is a kind of a memo which is used in accounting and bookkeeping to document any kind of credit transaction. It is a transaction which generates a credit in the general ledger. This transaction has an offsetting debit ticket as well, which is either simultaneously or in the coming future.
Basic example of a credit ticket is when you go to bank to deposit cheque, it produces a credit in the general ledger of the payee. Also a simultaneous debit ticket is written as a record of receipt of cheque and depositors account is debited with the cheque amount. This process of issuing credit and debit tickets is helpful as it helps in reconciling credit and debit transactions thus keeping the accounting records up to date and accurate. It also helps banks and other financial institutions track deposits to savings and checking accounts.
The main advantage of the credit ticket is that it allows keeping the history of transactions documented within the accounting records. Just by a glance, it is possible to determine if the originating bank has cleared a payment received, and if that payment has been properly applied to the right customer account. This documentation of the chain of events leading up to the application of the payment makes it much easier to review the series of events that occurred. This is especially helpful in cases when there might be any questions regarding when a payment was received, how long the payment took for clearance and when it was actually applied to the account balance.