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

[Former Member]

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

[Former Member · Accepted solution]

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)

[Former Member]

Hi Mahesh,

A/R Cr.Memo is for sales credit. A/P Cr.Memo is for pirchase credit. They have clear line to distinguish each other.

As for Cr.Note or Db.Note, those terms are not defined in B1. Cr.Note is usualy equivilent to A/R Cr.Memo. Db.Note might be same as A/P Cr.Memo in B1.

Thanks,

Gordon

[Former Member]

Hi both are for reversal purpose.

If u posted a Invoice(can be A/R or A/P) it will affect ur Business partner account balance. And if your customer returned some goods or u returned goods to vendor means you have to post a A/R Credit Memo or A/P Memo based on specified Invoices. So that it will adjust the account balance for those Business partners.

By

Kalai

Edited by: D. Kalaiselvan on Oct 14, 2008 1:31 PM