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Former Member

vandor crdit memo, subsequent debit memo and subsequent crdit memo

Hi,

what is the difference between subsequent debit, credit and credit memo in MIRO transaction.

In case of vendor had given us credit note with relevant to particular for which we had already completed the invoice verification and payment also paid.

in this case what document should i use i.e crdit memo, subsequent credit memo or subsequent debit memo??

plz suggest

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    author's profile photo Former Member
    Former Member
    Posted on Jun 17, 2008 at 01:34 PM

    Hi,

    Difference between Credit memo and subsequent debits/credits

    Subsequent Debits/Credits are used in cases where the quantity is in the original invoice is to remain the same.

    Example:

    PO 10 - $10

    GR 10 - $10

    LIV 10 - $11 (Logistics Invoice Verification)

    The vendor invoice is more than that in the Purchase Order.

    In order to correct, the Vendor may send in another invoice for the Increased amount

    or a credit memo for the reduce amount.

    If you approve of the price increase,

    post the subsequent invoice received as a Subsequent Debit Invoice.

    If it is a credit memo that has been received for reducing $1 of invoice price,

    then post the credit memo as Subsequent Credit.

    This would retain the quantity but reduce the amount.

    Subsequent Debit/Credit is for the case when the credit is not for the full amount

    eg. if the Vendor decided to credit & only the $1 overcharged.

    Credit memo is for the credit of the full amount and value.

    Thanks

    Kalyankumar

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