Credit Memo With Value Date

[Former Member]

Dear Friends,

In Billing Document "Credit Memo With Value Date". What is the use where it will affect to document.

Please give me detail uses of this function

Regards

Arun

[Former Member · Accepted solution]

Hi

Suppose, you have send goods of 100 pieces to some customer on 8/11/2009. As per the Payment term , let say, customer will pay you after 21 days (29/11/2009).

So, customer is availing a credit period as agreed in the business term.

Suppose, customer has returned 50 units out of 100 units to you on 8th November itself due to some reason which you have received to-day(9/11/2009).

Now, you need to process Return followed by a Credit memo for Return which becomes due immediately.

That means, even though customer is going to pay you on 29/11/2009 for 100 pieces but the Credit memo for 50 pieces becomes due to the customer even though he has not paid yet.

This is not good for any business. Therefore, this field "Value date credit memo" is avialble in the Billing Type (VOFA), so that you can handle this situation.

If you activate/mark this field (Value date credit memo) then the credit memo for return becomes due only after the baseline payment date of the Billing document, which is logical.

Regards