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Debit Note & Credit Note......

Former Member
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Hi Guru's,

what exactly diff between debit note and credit note? who will raise debit note and who will raise credit note? when it will happen? what is the entry for both? in SAP, is there any configuration? pl advice me with examples....

adv thanks

Venkat

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi

Example take this case

A is customer ,

B is vendor or manufatcure

Now M/f(b) send finished goods to customer(A)

for 2000 Qty wrt 20 lacs rupee.

Customer revceived the FG, and user some other purpose.but

quality of FG not good (10%) .So this 10% is goods amt bare with A & B

So now the customer rise the debit note to vendor.

that means u detuct the some amt for ur invoice bill

are u clear about debit note?

regards

ka

Answers (5)

Answers (5)

Former Member
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Debit Memo:

If the customer needs to pay an additional amount to the supplier, the supplier will raise a debit memo. The customer's accounts payables increases. T-Code: VA01

Additonal Info on Debit Memo: http://help.sap.com/bp_blv1500/BL_US/HTML/Scenarios/V4D_Scen_EN_US.htm

Credit Memo:

The supplier gives a credit to the customer. This means that the amount owed by the customer to the supplier decreases. This happens if customer is overcharged or customer has returned goods. The customer's accounts payables decreases. T-Code: FB60/F-27

Additional info on Credit Memo:

help.sap.com/bp_bblibrary/500/Documentation/J03_AP_CreditMemo_BPP_EN_US.doc

Assign points if info helps.

Vj

Former Member
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Hi Guru's,

what exactly diff between debit note and credit note? in SAP, is there any configuration? pl advice me with examples....

scenario-1: If A purchased raw material for 5000/-. user returned some raw material worth of 1000/-. in this case who will raise the note(means debit/credit) and what is the entry?

scenario-2: If B sells finished goods for 10000/-. user returned some goods worth of 2000/-. in this case who will raise the note(means debit/credit) and what is the entry?

sure i will assign points...

adv thanks

Venkat

Former Member
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Hi Venkat,

In both scenarios you would issue debit notes for the amounts purchased and/or sold by business. You would then issue credit notes for the amounts returned. I think the problem here is that you are getting the revenue and cost mixed. Remember that for goods sold, that is strictly customer based and deals with sales (SD); for purchasing (CO) you will know when to issue a debit based on whether you puchased goods. if you return goods, you have to issue a credit.

Please let me know if this helps.

Regards,

Rayshaun

Former Member
0 Kudos

Hi Guru,

Please note that a debit or credit note represents a payables or cost object in FI. So in the situation where you issue a debit note, you are creating a payment in FI towards a partner and/or customer account. If you issue a credit note, you are requesting funds in FI towards a partner and/or customer account.

The standard functionality of these notes all depends on whether this is a cost or revenue transaction.

Please provide a scenario in which you are concerned about the creation of either and I will be able to go into more detail. Provide transactions that you may use.

Best Regards,

Rayshaun

Former Member
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Hi Guru's,

thanks for ur valuable answer but still i am not unable understand. can u come with clear picture....

what exactly diff between debit note and credit note? who will raise debit note and who will raise credit note? when it will happen? what is the entry for both? in SAP, is there any configuration? pl advice me with examples....

adv thanks

Venkat