Pls. give some suggestion on Subsequent Credit and debit note?

[Former Member]

Dear Gurus,

Pls. give some suggestion on Subsequent Credit and debit note?

Regrds

Shikha

[Former Member · Accepted solution]

Hi Sikha

We generaly use subsequent debit / credit to adjust invoice value without affecting Qty

Pls check notes supplied by SAP

A subsequent debit/credit arises if a transaction has already been settled, and a further invoice or credit memo is received afterwards.

A subsequent debit/credit changes the total invoice value of a purchase order item; the total invoice quantity remains unchanged. Therefore, only a value-based update of the purchasing transaction takes place. There is no quantity-based update.

You must enter an invoice as a subsequent debit if a purchase order item has already been invoiced and further costs are incurred. (Example: A vendor has inadvertently invoiced you at too low a price and then sends a second invoice for the difference.)

You must enter a credit memo as a subsequent credit if a purchase order item was invoiced at too high a price and now you have received a credit memo. (Example: A vendor has inadvertently invoiced you at too high a price and then sends a credit memo for the difference.)

If you enter a subsequent debit/credit, the system suggests the entire invoiced quantity, but no value. The maximum quantity that you can subsequently debit or credit is the quantity that has already been invoiced.

You can only enter a subsequent debit/credit for a purchase order item if an invoice has already been posted for that item.

A subsequent debit/credit cannot refer to a particular invoice.

Subsequent debits and credits are listed separately in the PO history

Typical example is like

suppose vendor has overcharged u for perticular PO and afterward he want to correct it

In such scenario u can post subsequent debit to correct PO without affecting Qty. field

<b>Reward if usefull</b>

Vishal..

[Former Member · Accepted solution]

Hello Vishal,

As per the example given below in your reply.............

Typical example is like

suppose vendor has overcharged u for particular PO and afterward he want to correct it

In such scenario u can post subsequent debit to correct PO without affecting Qty. field

-

---

The vendor will raise the Subsequent credit or we can raise the subsequent debit.

It is quite obvious that we need to raise the subsequent debit as vendor won't like

to have the loss for the extra amount which he has got by overcharging the vendor.

Thanks a lot for your reply.I have read many manuals and documents to clarify about the doubt which i was having regarding the Subsequent credit and debit.But your reply was very comprehensive and was much clear to me.

once again thanks for the reply....................

From

Shikha

[Former Member]

Hi,

Subsequent Debit: My vendor first agreed to supply 100 nos of Material A each @ $1 after GR and IR,He claims that i had wrongly quoted $1 instead of quoting at $2. So he sends one more invoice ( Debit Note ) for $100 extra. Now this needs to be adjusted for that particular PO. So you need to create a Subsequent Debit irrespective of quantity. It merely posts a adhoc amount to the PO.

Subsequent Credit: My vendor first agreed to supply 100 nos of Material A each @ $2 after GR and IR,He claims that i had wrongly quoted $2 instead of quoting at $1. ( Due to sudden price decrease of the product ) So he sends a credit note for $100. Now this needs to be adjusted for that particular PO. So you need to create a Subsequent Credit irrespective of quantity. It merely posts a adhoc amount to the PO

Regards,

DilliB

[Former Member]

Dear Shikha,

I think ur confusion on Subsequent debit /credit has been solved.

Regrds

Mahesh

[Former Member]

Hello,

See the following information

Subsequent Debit/Credits

Use

You want to post an invoice or a credit memo for subsequent charges in which all the items are subsequent debits/credits.

Prerequisites

You can only enter a subsequent debit or credit for a purchase order item that you have already posted an invoice for.

Procedure

Choose Logistics Invoice Verification ® Document Entry ® Enter Invoice.

The Enter Invoice screen appears.

Choose one of the following transactions:

Subsequent debit

Subsequent credit

Enter the header data as required, and enter the Allocation that the subsequent debit/credit refers to.

Choose . The system proposes the invoice items.

All invoice items that an invoice has already been posted for are selected by default. The default quantity is the total quantity invoiced without a value.

Check the selection indicators and the quantities.

Enter the amount in the individual invoice items.

Choose Post.

If the balance is zero, you can post the document.

Account Movements When Subsequent Debits/Credits Are Posted

The account postings for a subsequent debit/credit depend on the quantity that the subsequent debit/credit applies to:

If the quantity of the subsequent debit/credit is smaller than or the same as the quantity delivered, the system tries to post the subsequent debit/credit to the stock account. If the material is valuated with a standard price or if there is insufficient stock coverage for the quantity to be debited or credited, the amount is posted to a price difference account.

If the quantity of the subsequent debit/credit is larger than the quantity delivered, the system distributes the relevant amount proportionally.

The part of the subsequent debit/credit that does not have a goods receipt is posted to the GR/IR clearing account.

The remaining amount is posted to the stock account – or in the case of standard price control or

insufficient stock coverage

– to a

price difference account

.

Account Postings Made when an Invoice Is Posted as a Subsequent Debit:

Regards

Kedar Kulkarni

[former_member218067]

Hi,

Go through the following link

http://help.sap.com/erp2005_ehp_02/helpdata/en/a8/b99f58452b11d189430000e829fbbd/frameset.htm

BR

Diwakar