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About A/R Cr.Memo and A/P Cr memo .

Dear Friends,

There are A/R Cr.Memo in AR side and A/P Cr memo in AP side.

Can explain me its purpose in respective side,please.

And how it relate to Db. Note and Cr.Note.

Regards,

mahesh

replied

Hi Magesh,

Let i explain it briefly.

Assume you are the trader.

After purchasing the material from the BP(Vendor). later you find some material are damage. now you want to return it back to the BP (Vendor ). at this time you use the A/P Credit Memo. This transaction replies that the amount will affect the Outstanding balance of the BP (Vendor). as Credit Balance( it Means that you had given back ). (CREDIT NOTE)

The reverse was is for BP(customer) as debit because you are receiving the material from the BP(Customer) to you godown are stores you have to return back the cash/Cheque to the BP. (DEBIT NOTE)

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