subsequent credit

[Former Member]

Sir, plz help me out what is difference between subsequent credit & Credit memo.

explain me 1 scenerio with reference to subsequent credit.

thanks sir

[kailas_ugale]

HI,

-----------points will be added immediatetly---------

This statements Against  forum rule.Avoid to use this. Every New  thread you are repeating this.

Kailas Ugale

[Former Member]

This message was moderated.

[ajitkumar]

http://wiki.sdn.sap.com/wiki/display/HOME/Rules+of+Engagement

pl read this

[kailas_ugale]

Hi,

dear kailas Ugale
any problem with this...do u feel any problem..if yes i dont care & No then i care...
regards
gaurav

I don't have any Problem But you will be in problem if  Moderator Lock your user ID or Thread

[Former Member]

This message was moderated.

[former_member184631]

Subsequent Debits/Credits  : These transactions are run with ref. to an lnvoice where vendor has given the full Qty but there is a difference in the amount of Invoice & Purchase order.

For eg.

PO  10 - Rs100

Gr   10 - Rs100

LIV 10 - Rs110 (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 increased amount.

If price increase is justified & approved , then post the subsequent invoice received as a Subsequent Debit/Credit Invoice. This would retain the quantity but reduce the amount.No GR/IR Clearing Account will be hit . Qty Variation is not required in MIRO.

Credit Memo  It can be used for vendor returns, Return delivery (via GRN) will be done and based on the PO and return delivery quantity. In credit memo ,accouting entries will involve GR/IR clearing account as it is linked GR also. Qty needs to be changed in MIRO.

[Former Member]

Hi,

You go through the following point i.e. clear the concept of  Credit Memo, Subsequent Credit and Debit.

When you post a reduced invoice, the R/3 System creates two accounting documents:

• The first document contains the invoice postings for the actual quantities and values.The second document contains a credit memo for the difference between the actual invoiced quantities and values and the suggested quantities and values.
• Therefore, with invoice reduction, you do not actually reduce an invoice. Instead, you also post a credit memo for the amount of the reduction. The amount payable to the vendor is the value of the invoice reduced by the credit memo amount.
• The invoice document is listed in the purchase order history with the suggested quantity as the invoice quantity.
• When you post an invoice reduction, the R/3 System creates a message record. You can use this to generate a letter of complaint (notification of credit memo posting) to the vendor.

A subsequent debit/credit changes the total invoice value of a purchase order item; the total invoice quantity remains unchanged.

• An invoice must be entered as a subsequent debit if a purchase order item has already been invoiced and further costs are incurred. (For example, a vendor has inadvertently invoiced you at too low a price and then sends a second invoice for the difference.)
• You must enter a credit memo as a subsequent credit if a purchase order item was invoiced at too high a price and now you have received a credit memo. (For example, a vendor has inadvertently invoiced you at too high a price and then sends a credit memo for the difference.)
• If you enter a subsequent debit/credit, the R/3 System suggests the entire invoiced quantity, but no value. The maximum quantity that you can subsequently debit or credit is the quantity that has already been invoiced.
  1. You can enter a subsequent debit/credit for a purchase order item only if an invoice has already been posted for that item.
  2. A subsequent debit/credit cannot refer to a specific invoice.
  3. Subsequent debits or credits are flagged in the purchase order history.

Regards,

S K Pankaj

[Former Member]

In case of Credit memo, you will decrease only Quantity subject to Quantity earlier invoiced.

Where as with Subsequent Credit you will decrease Amount per piece subject to already invoiced.

More definition you can find @

http://help.sap.com/saphelp_45b/helpdata/en/a8/b9970b452b11d189430000e829fbbd/content.htm

http://help.sap.com/saphelp_46c/helpdata/en/a8/b998aa452b11d189430000e829fbbd/content.htm

[Former Member]

Hi Gaurav,

Please refer to the below link

http://scn.sap.com/thread/1623093

[former_member188027]

Hi

When an additional invoice or credit memo is received for a transaction that has already been invoiced, this is known as a subsequent debit/credit. And a credit memo is used for reversale, it can be used for vendor returns

Please chek this,

http://scn.sap.com/thread/1538861 -  diffrence between credit memo and susequent credit

http://help.sap.com/saphelp_45b/helpdata/en/a8/b9970b452b11d189430000e829fbbd/content.htm

http://scn.sap.com/thread/1910031

http://www.saptechies.com/difference-between-credit-memo-and-subsequent-debitscredits/

Regards,

Anand

[Former Member]

credit memo

PO - 100 EA @ 10 $, GR - 100 EA, IR - 100 @ 10 $

later you returned 5 EA to vendor because of damage, now you can go for credit memo. while posting credit memo you adjust both quantity and value..

Subsequent credit

for the same example above, after posting the invoice, vendor is agreeing to give some discounts for the total value... so you can post subsequent credit for only the value without adjusting the quantity.

Different between both are quantity adjustment.. credit memo adjust both quantity and value whereas subsequent credit adjusts only value.. also in the PO history, credit memo is posted similar to Invoice but subsequent credit posted as different document 

[Former Member]

Thanks for ur valuable reply,

but what does it means in ur reply "subsequent credit posted as different document "

[Former Member]

If you post an Invoice and credit memo and check the PO history.. you see both the invoice and the credit memo under the PO history short text category "RE-L"

If you post an Invoice and subsequent credit and check the PO history.. Invoice document is displayed under "RE-L" and Subsequent credit is displayed under "NB-L"

This is one the difference for credit memo and subsequent credit apart from I already explained... Credit memo adjust the quantity whereas subsequent credit doesnt adjsut the quantity but only value.

[Former Member]

Hi

Credit memo is nothing but the reversal or the cancellation of the invoice which you have already created against the particular vendor.

Subsequent credit is the function which you are performing against the vendor  for the excess amount already invoiced against the particular vendor.

You can able to perform subsequent debit/ credit only after the invoice is created for that PO.

[Former Member]

in both case credit memo & subsequent credit,

we are taking a Rs from vendor..that what make sense with this between two.

does is there any difference related to quantity & amount..if it so plz help me out