Debit and credit Memos

[Former Member]

Can any one give some information on debit and credit memos? What are they?

Thanks in advance

Davinder Singh

[madhan_narlapuram · Accepted solution]

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.

to create credit or debit memos -- while creating sales order select CR or DR type ..

reward if useful..

thanks

madhan

[Former Member]

. 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 invoices 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other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.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 document 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.

[Former Member]

hai,

to put it simple

debit memo: it is used when u have a charged a customer less than he is supposed to ,then in order to cover the differnce u issue a debit not.

doc type: l2, item cat:l2n

credit memo:

this is used when u are supposed a charge a customer a less amount than u have charged, now customer is on a loosing end ,then in order to ratify his loss,

we use a credit memo.

doc.type: g2, doc type:g2n.

there can be various scenarios other than this ,this would give u a general idea of what they are.

regards

hope it helps

reward if satisfied

sriram.

[Former Member]

Hi Davinder

Debit and Credit memos are use in complaint processing.

If we over charge th customer we create credit memo.

If we under charge the customer we create debit memo.

Following explanation will give you better understanding

<b>Credit Memo</b>

<b>Definition</b>

A credit memo request is a sales document used in complaints processing to request credit for a customer.

<b>Use</b>

If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a discount was forgotten), you can create a credit memo request. The credit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.

The system uses the credit memo request to create a credit memo.

<b>Debit Memo Request</b>

<b>Definition</b>

A debit memo request is a sales document used in complaints processing to request debit for a customer.

<b>Use</b>

You can create a debit memo request if the prices calculated for the customer were too low (for example, if the wrong scale prices were calculated). The debit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.

The system uses the debit memo request to create a debit memo.

<b>Structure</b>

A debit memo request is another type of sales document like a standard order. For more info rmation on sales documents, see Working With Documents.

<b>The following entries are important for creating a request:</b>

• Customer number of the business partner who requests a credit memo or to whom a debit memo is to be forwarded

• Order reason (why the request is necessary)

• Material and the quantity in the request

Reward if it adds info

[Former Member]

What is Debit note and Credit note? What is the purpose? How we create?

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 invoices 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 document 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.

Regards,

Rajesh Banka

reward points if helpful

[Former Member]

Hi Davender.,

Credit memo means when we sell goods to a customer and if they are damaged in transit,Customer should return,If the cost of return transportaion is high for the damaged goods,we dont recieve the goods and we raise a credit memo for the damaged value

Ex- 1000 Value goods sold,Out of 200 value damaged in transit and the cost of returning the goods may cost 500, So we raise a creidt mamo using G2 order type,G2N is the item category,

Debit memo requst means ,due to any reason we may deliver tyhe goods to the customer more than what he ordered so in this case we raise a debit memo

Ex- Customer ordered for 1000 Value of goods and we deliovered for 1500 Value of goods, Then we raise a debit memo for 500 value of goods ,For this Order type is L2,and item category is L2N

Feel Free to ask any queries

REWARD if helpfull

Thanks & Regards

Narayana

[Former Member]

Thanks very much