Crdeit and debit memo..

[Former Member]

can anyone suggest me some business scenarios for credit and debit memos and requestions?

regards,

divya.s

[nisha_sharma1 · Accepted solution]

Hello Divya,

_Credit Memo Business scenario:_

When there is a damage/poor quality of any material delievered to customer. and customer return the materialbecause any reason. then the vendor/plant (who has delivered the material )has to raise a credit note on the name of that customer.Customer will raise a Credit memo for this.

this is the std scenario for Credit memo.

Suppose you have(Vendor) charged more for some material to customer. Even then customer can raise a credit memo.

and vendor has to give credit note on that.or may be free of charge delivery.

Debit Memo Bisiness Scenario:

suppose vendor has charged less for particular delivery . then later vendor can raise a debit memo in thsi regard.

i hope this will help you.

reward is helpful

these are std scenario in debit and credit memos.

Regards,

Nisha

[Former Member]

Dear divya selvam,

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other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.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

Do let me know in case of any queries.

Hope this helps you.

Do award points if you found them useful.

Regards,

Rakesh

[Former Member]

hello, friend.

credit memos are billing documents created to reimburse, refund, return or award funds to your customers (or reduce his payables) for the following reasons:

1. returns (where the customer returns materials to you for a variety of reasons, and you honor the transaction by posting inbound delivery and creating billing document RE)

2. customer complaints (no physical return of materials is involved... this starts out as credit memo request and once approved and billing block is removed, we create billing document type G2)

3. invoice correction (for example, our original price was too high and the resulting billing document is also a credit memo)

on the other hand, debit memos have the opposite effect. these inform the customer that they must remit funds to us and/or increase our receivables from him. debit memos can arise from:

1. discovery that customer received more stocks than what the sales documents indicate, which the customer acknowledges and accepts (this may start as a debit memo request and ends as billing document type L2)

2. damage or loss to goods during transport (for example, when your forwarding agent/vendor is also your customer, and losses happened is his responsiblity)

3. invoice correction (when the price is below what was agreed and the difference is acknowledged by customer)

these are just some examples.

hope this helped.

regards.

[former_member204513]

Hi Divya,

1. Regarding Credit memo when the company recieves the expairy or damaged goods from the customer the company need to raise Credit note for that customer.

Thoumb rule when the company nedds to give some amount to the customer the company will raise the Credit memo to that perticuler customer.

2. when the Customer needs to give some amount to the company at that time company will raise the Debit memo

Ex: Customer send the DD for Rs1000, but company dispactched the goods for Rs 1100, at this place the company will raise the Debit memo for 100 to the Customer.

I hope it will clear you

Regards,

Murali.

[Former Member]

http://help.sap.com/saphelp_47x200/helpdata/en/4e/b3c399a1f711d194e700a0c9306794/frameset.htm

go through this link n reward points if it is helpful to u