What is Debit note and Credit note
What is Debit note and Credit note
What is Debit note and Credit note?
What is the purpose? How we create?
A D V E R T I S E M E N T
1. A transaction that reduces Amounts
Receivable from a customer is a credit memo. For eg. The customer could return
damaged goods. A debit memo is a transaction that reduces Amounts Payable to a
vendor because, you send damaged goods back to your vendor.
2. Credit memo request is a sales document used in
complaints processing to request a credit memo for a customer. If the price
calculated for the customer is too high, for example, because the wrong scale
prices were used or a discount was forgotten, you can create a credit memo
request. The credit memo request is blocked for further processing so that it
can be checked. If the request is approved, you can remove the block. The system
uses the credit memo request to create a credit memo.
You can use credit memos in Sales and Distribution (SD)
for assigning credit memo requests to the open invoice and in Financial
Accounting (FI) for assigning credit memos and payments to the open invoices
and carry out clearing with them. If you use both Financial Accounting (FI) and
Sales and Distribution (SD), there is a 1:1 relationship between the credit
memo request and the credit memo item posted in Financial Accounting (FI). As
soon as you bill the credit memo request together with other sales orders, or
distribute the items of one credit memo request to several billing documents,
the assignment is no longer valid and the system will not process it.
For credit memos, credit memo
requests, and payments, you have the following assignment options:
- Assignment to a single invoice
- Assignment of a partial amount to an invoice
- Assignment to several invoices
When you post credit memos, the payment programme
processes them automatically. If the credit memo is specifically related to a
particular open invoice item, the payment program automatically attempts to
offset the credit memo against the open item. If it is not possible to
completely offset the credit memo against an invoice, you can post a debit memo
to the vendor, who is to reimburse the amount. Then you can apply a multilevel
dunning program.
3. Debit memo request is a sales document used in
complaints processing to request a debit memo for a customer. If the prices
calculated for the customer were too low, for example, calculated with the wrong
scaled prices, you can create a debit memo request. The debit memo request can
be blocked so that it can be checked. When it has been approved, you can remove
the block. It is like a standard order. The system uses the debit memo request
to create a debit memo.
4. As mentioned above, creating a credit or debit memo
request enables you to create credit or debit memos based on a complaint. For
this first create a sales document with the order type for a credit or debit
memo request. You can create the debit or credit memo requests in the
following ways:
� Without reference to an order
� With reference to an existing order
Here you enter which order the complaint refers to.
� With reference to an invoice
Here you enter which invoice the complaint refers to.
In all cases, you specify the value or quantity that
should be in the credit or debit memo
5. You can block the credit or debit memo request from
being billed in Customizing. Go to Sales -> Sales Documents -> Sales document
header -> Define sales documents type and select the billing block field in the
billing section. This request can later be reviewed along with similar ones, -
if necessary, by another department. The request for a credit or debit memo can
then be approved or rejected.
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