Accounting treatment for deductions by client in PS

[Former Member]

Dear All,

My customer has deducted USD 10000 from my running bill of USD 1mn. How do I incorporate the same in the payment certificate generated in SAP vis a vis its accounting treatment.

Pritesh

[former_member198650 · Accepted solution]

Hi Pritesh,

You have to raise credit memo for the same. The accounting transactions will be based on the nature deductions. If it is freight deduction then the freight charges a/c will be debited or if it is discount then the discount a/c will be debited etc and customer a/c will be credited.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Thanks for your answer.

Pritesh