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Former Member

Credit and Debit Memo (Vendor and Customer)

Hi Team,

Credit Memo raised means - Debit to SAP/Company and Credit to Vendor/Customer?

Debit Memo raised means - Credit to SAP/Company and debit to Vendor/Customer?

Is this understanding is correct?

Thanks

Ram

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    author's profile photo Former Member
    Former Member
    Posted on Jan 18, 2012 at 02:28 AM
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  • author's profile photo Former Member
    Former Member
    Posted on Jan 18, 2012 at 04:26 AM

    Hi Ram,

    Case Vendor:

    Invoice : We receive goods and vendor is credited for the same. Goods and hence GR/IR a/c are involved.

    Subsequent Debit : We receive goods and value addition to the received goods already invoiced is given by vendor. Here value direct debited to goods and credited to vendor. No GR/IR a/c involved.

    Credit Memo : Goods return to vendor in case of damage or something. Here goods are involved. Vendor debit occurs and debit note is to be raised. Here GR/IR a/c is also affected.

    Subsequent Credit : Here goods are not returned. Only value reduction of already invoiced goods. (in case of discount or something). Here GR/IR a/c not involved. Vendor debited and material is credited. Debit note is to be raised.

    Hope it helps

    sBk

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