Credit Memo or Debit Memo

[Former Member]

Hi Experts,

I want to know the scenarios when we raise a credit memo or debit memo for a vendor and customer.

Also I have a scenario in which we buyed some 10 material for Rs 100/- for which invoice and payment is done,

after that we found 1 item to be deffective and to be returned to vendor. what to do in this case.. please mention the step by step procedure.

Thanks in advance..

[former_member187989 · Accepted solution]

>

> Hi Experts,
> 
> I want to know the scenarios when we raise a credit memo or debit memo for a vendor and customer.
> 
> Also I have a scenario in which we buyed some 10 material for Rs 100/- for which invoice and payment is done,
> after that we found 1 item to be deffective and to be returned to vendor. what to do in this case.. please mention the step by step procedure.
> 
> Thanks in advance..

For your case,

1. Create return p.o for 1 qty

2. Do MIGO - 161 mvmt for 1 qty

3. Create & post excise using J1IS with reference to material document

4. Raise credit memo using MIRO.

[Former Member]

Hi,

For your scenario, no need to raise credit memo or debit memo for a vendor and customer. For resolve this scenario do the steps as follows.

step-1. Create PO in ME21N

step-2 Give input data's are vendor code, po date, material code,quantity, plant,storage location,account assignment,item category, gross price,tax code.

Step-3 After that input data's filled and tick mark of Returns Item option in the PO line item.

Step-4 PO checked and SAVE.

step-5 After PO released doing MIGO for that purchase order with material movement type 161 posted automatically based on Returns Item ticked mark in PO line item.

step-6 Based on GRN, MIRO posting done.

Hope, it is useful for you.

Regards,

K.Rajendran

[Former Member]

Dear Rajendran,

Thanx for your reply. but i have a doubt in step-6.

Without any invoice document how can I do MIRO.

Please elaborate this step.

Thanks in advance

[former_member182609]

Do the MIRO as per return PO.Do invoice as normal sytem will allow you create invoice for return PO (But this will be Credit memeo)

[Former Member]

Hi,

Assume if you had procured 10 material for Rs 100/- for which all transcation such as GR, Invoice Posting and payment has done,

after that if you wants to send say 1 material which is to be deffective and to be returned to vendor. In this case you follows as below

For your case,

1. Create return p.o for 1 qty - Tick in the PO return

2. Do MIGO - 161 mvmt for 1 qty System automatically picks up the Movt type 161 which reduces stock upon doing Migo.

3. Create & post excise Invoice using J1IS with reference to material document which results in reversing the Excise duies which was earlier captured.

4. Raise credit Memo using MIRO.- Results in reversing the Amount which was already paid to vendor.

Now coming to your case as you had asked for Debit Memo which will not come in the procurement, in procurement you have only 4 option

1) Invoice:

2) Credit MEMO:

3) Subsequent debit

4) Subsequent credit

Hope this helps U

[Former Member]

Hi

SALES

Credit memo: A sales document created on the basis of a customer complaint. This reduces receivables in Financial Accounting.

Debit memo: A sales document created on the basis of a customer complaint. This increases receivables in Financial Accounting

PURCHASE

credit memo. That means the vendor is giving money to the company.

debit memo:Subsequent debit is used if you have already invoiced.you want receive back the money from vendor

Regards

Pramod