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What is credit and debit memo? cancelled and returned transactions...

aris_hidalgo
Contributor
0 Kudos

Hello Experts,

Can you please explain what does the terms above mean? Thank you guys and

take care!

2 REPLIES 2

Former Member
0 Kudos

hi...

A transaction that reduces Amounts Receivable from a customer is a credit memo. For eg. The customer could return damaged goods. A debit memo is a transaction that reduces Amounts Payable to a vendor because; you send damaged goods back to your vendor.

Credit memo request is a sales document used in complaints processing to request a credit memo for a customer. If the price calculated for the customer is too high, for example, because the wrong scale prices were used or a discount was forgotten, you can create a credit memo request. The credit memo request is blocked for further processing so that it can be checked. If the request is approved, you can remove the block. The system uses the credit memo request to create a credit memo.

3. Debit memo request is a sales document used in complaints processing to request a debit memo for a customer. If the prices calculated for the customer were too low, for example, calculated with the wrong scaled prices, you can create a debit memo request. The debit memo request can be blocked so that it can be checked. When it has been approved, you can remove the block. It is like a standard order. The system uses the debit memo request to create a debit memo.

As mentioned above, creating a credit or debit memo request enables you to create credit or debit memos based on a complaint. For this first create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways:

Accont receivables and account paybales are in FI Module - suppose you order some material and you cancelled the order - meanwhile company charges money from ur credit card ,now customer has to get money ,this time account receivable and account payable will come in pictures ...

<b>Reward points if useful</b>

Regards

Ashu

Former Member
0 Kudos

Hi,

A credit memo request is a sales document used in complaints processing to request credit for a customer.If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a discount was forgotten), you can create a credit memo request. The credit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.

The system uses the credit memo request to create a credit memo.

A debit memo request is a sales document used in complaints processing to request debit for a customerYou can create a debit memo request if the prices calculated for the customer were too low (for example, if the wrong scale prices were calculated). The debit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.

The system uses the debit memo request to create a debit memo.

Create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways:

– Without reference to an order

– With reference to an existing order

Here you enter which order the complaint refers to.

– With reference to an invoice

Here you enter which invoice the complaint refers to.

In all cases, you specify the value or quantity that should be in the credit or debit memo.

You can block the credit or debit memo request from being billed in Customizing. Go to Sales ® Sales Documents ® Sales document header ® Define sales document type and select the billing block field in the billing section.

This request can later be reviewed along with similar ones, - if necessary, by another department. The request for a credit or debit memo can then be approved or rejected.

Once the credit or debit memo request has been approved, you can create a credit or debit memo .

Thanks.