Debit note

[Former Member]

Hi

Can debit notes be raised between business areas? What is the procedure?

[Former Member]

Dear Nihar,

Reading this procedure you can clear picture

You can use the transaction FB65 for credit memo or FB60 for invoice/debit memo.

customers

FB75 and F-27

Vendors

FB65 and F-41

You can raise a Credit Memo for a Vendor using the transction code FB65 (without reference to an invoice) or MIRO (if it is with reference to an invoice) and the system would pass the following accounting entry

Dr. Expenses A/c

Cr. Vendor A/c

This particular document would have a payment term and payment due date. While running Automatic Payment Process, depending on the payment method the system will pick up the document and create a cheque / electronic transfer etc for the vendor with the following entry

Dr. Vendor A/c

Cr. Bank Clearing A/c

In the case of Customer you can account the credit memo (without reference to invoice) using FB75 or VA01 (Order Type CR, if it is with reference to an invoice). While you create the billing document for the order type CR the system would raise the following accounting

Dr. Expenses A/c

Cr. Customer A/c

This particular document would have a payment term and payment due date. While running Automatic Payment Process, depending on the payment method the system will pick up the document and create a cheque / electronic transfer etc for the customer with the following entry

Dr. Customer A/c

Cr. Bank Clearing A/c

Credit note: A credit note is a document that decreases the company's receivables and decreases the customer's liability.

Debit note: A debit note is a document that increases the company's receivables and the customer's liability.

please refer

http://help.sap.com/saphelp_47x200/helpdata/en/47/60fb7a49f011d1894c0000e829fbbd/frameset.htm

http://help.sap.com/saphelp_47x200/helpdata/en/80/ceafb47f4c11d5992f00508b6b8b11/frameset.htm

http://help.sap.com/saphelp_47x200/helpdata/en/dd/561076545a11d1a7020000e829fd11/frameset.htm

Debit Note:

As the name suggests is an advice or note used to Debit a Vendor/ Customer.

Eg. After you have received the goods there are discrepancies in them you want to reduce the cost in such a case you raise a Debit note on the Vendor, intimating the Vendor so.

Credit Note:

It is an intimation to the Creditor/ Vendor for crediting his account maintained in our books of accounts.

Eg. After goods are being despatched if you want to declare any discount you can do so by giving an intimation through a Credit Note.

Hope this meets your requirement...

Prem

[Former Member]

Hi Nihar,

This process shows you how to enter a debit memo (or credit memo) for input VAT (value-added tax). You can follow this process, for example, if a vendor sends you an invoice with the wrong tax rate and later sends you a credit memo to change the tax rate.

The process described here assumes that you have not paid the original invoice.

Process Flow

You enter the invoice.

In this case, the vendor has charged you VAT at 23%, but it should have charged only 6% instead.

You enter a debit memo for the tax, and contact the vendor to tell them that they have charged the wrong tax rate.

When you enter the debit memo, you must post it using the original tax codes. The debit memo document must:

Reverse and clear the original tax item in its entirety

Create a new tax item

This enables the tax transfer-posting program to make links between memos and the original invoice and track payments against both the documents. Payments must be posted to individual documents (invoice, credit or debit memo) and must not be cleared with one clearing document.

you can also refer this link for detailed description

http://help.sap.com/erp2005_ehp_02/helpdata/en/22/97915ebb1d11d6b2ae00508b6b8b11/frameset.htm

Regards

Ashish Jain

[Former Member]

Hi Ashish,

Thanks for the reply. I actually wanted to know how debit notes can be raised "between business areas" . Is it the same procedure?

Thanks

[Former Member]

Yes