Help needed with a sentence

[Anewguest]

Hello everybody,

Once again I have trouble understanding a sentence (especially the parts in bold). Could someone simplify it for me?

After receipt and acceptance of the Products from Dealer, Distributor will issue an appropriate credit to Dealer’s account, or, if no accounts are outstanding, will make payment to Dealer.

[Gillnetter]

Hello everybody,

Once again I have trouble understanding a sentence (especially the parts in bold). Could someone simplify it for me?

After receipt and acceptance of the Products from Dealer, Distributor will issue an appropriate credit to Dealer’s account, or, if no accounts are outstanding, will make payment to Dealer.

#1. The dealer takes some products back to the distributor.
#2. The distributor accepts the products and gives the dealer a receipt.
#3. The distributor will either (a) give a credit to the dealer's account, or, (b) will give the dealer money for the products, if the dealer owns nothing to the distributor.

The credit mentioned here is an accounting term - The distributor will credit the account with $15.00. The amount the dealer has is increased by $15.00 and the amount of money the distributor has is lessened (goes down) by $15.00.

[Anewguest]

Thanks for the reply, but I still don't understand the difference between crediting and paying the dealer. Looks the same to me.

[emsr2d2]

If I pay you $15, I actually give you $15 either in cash or direct to your bank account.
If I credit you $15, I tell you that you can now have/order $15-worth of goods from me, but I will not ask you for any money for them.

[Anewguest]

Thanks, I get it now.

[Rover_KE]

Suggestion for a better title: Issue an appropriate credit to dealer's account, as that is what you were puzzled about.

Rover

[SoothingDave]

You may have paid me $15 for the items that you are returning. So I owe you $15. But you may have other orders from me, with payments outstanding.

Let's say you have three other orders from me and together you owe me $100 for those three orders.

Now, I can write you a check for $15. And you can write me a check for $100.

Or, I can credit you $15 on the $100 you owe me and you can then owe me $85.