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Former Member
Apr 07, 2011 at 10:27 AM

Debit memo and Credit memo

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Dear Expert,

I always confused on Debit memo and Credit memo...especially the business scenario behind and how it is reflecting in SAP system.

Let's take this example:

e.g the Price in the main Invoice is lesser than the actual price, and the difference needs to be recovered from the customer.

My analysis:

"The invoice is lesser than the actual price", Means Product should cost 100 USD, but we billed customer only in 80 USD, there are 20 USD difference. Customer should pay us the rest 20 USD. So our Account receiivable should be increased. So we need create Debit memo to customer and ask them to pay the money. Customer received the Debit memo, they will create credit memo and send it to us said they will pay the money.

Am i understanding correct??? Please kindly share in case you have better simple example. Thank you very much.