Doubt with Debit posting and Credit posting in SD

[Former Member]

Hello All,

Please help with the small doubt:

During Billing: When you create a billing document, The system carries out the following:

• a debit posting on the customer's receivables account

• a credit posting on the revenue account.

1. What does it mean by debit posting on the customer's receivables account during biling process ?

2. Credit posting on revenue account means reduction in receivables in company's revenue account ?

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During Payment: When you post an incoming payment,The system carries out the following:

• a debit posting on the cash account

• a credit memo on the customer's receivables account

1. Debit posting on case account, means this increases receivables in finiancial accounting, is it correct?

2. Credit memo on customes receivables account means reduces receivables from customers account ?

Your suggestions would highly appreciated.

Thanks

Ayush

[Lakshmipathi]

Please go through the basic / fundamental principles of Accounting so that you will find yourself answers to such questions.  This is not a SAP related query and avoid posting similar queries here.  Being an old member, there is no need to stress the importance of adhering to forum rules and please stick to that.

G. Lakshmipathi

[moazzam_ali]

Hi

I dont know why you have posted this question here in SD. First thing is that this is purely FI related query because you are asking about accounting document and logics. 2ndly even for FI this is very basic question. You need to learn basics of accounting. What is debit and credit posting and how it works in SAP invoice and payments.

Did you search and study some available material in SCN and Google? I hope you could get enough material on basic accounting entries and principles.

Thank$