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Former Member

Credit memo created during Vendor consignment process

As per my understanding, during Vendor consignment process, the company is liability towards the vendor during the withdrawn of goods from Vendor consignment stock. Hence in that case. we suppose to create Debit memo, but why does the system terms as Credit memo????

Could any body can explain the same with an example?????

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1 Answer

  • Jul 18, 2017 at 11:25 PM

    if you send a debit memo then you request the other party to pay to you. In the consignment process you have to pay your vendor, hence your vendor has a credit and gets a credit memo from you instead of sending a debit memo (aka an invoice) to you.

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