Difference between Credit memo and subsequent credit

All SAP Gurus,
In MIRO, what is the difference between Credit memo and subsequent credit?
Regards,

Difference between Credit memo and subsequent debits/credits
Subsequent Debits/Credits are used in cases where the quantity is in the original invoice is to remain the same. For eg.
PO  10 - $10
Gr   10 - $10
LIV 10 - $11 (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 you approve of the price increase, post the subsequent invoice received as a Subsequent Debit/Credit Invoice.
If it is a credit memo that has been received, then post the credit memo as Subsequent Debit/Credit.
This would retain the quantity but reduce the amount.
Subsequent Debit/Credit is for the case when the credit is not for the full amount eg. if the Vendor decided to credit
only the $1 overcharged.
Credit memo is for the credit of the full amount and value.

Similar Messages

  • Credit memo and subsequent credit

    Can anybody tell what is the difference between a Credit memo and subsequent credit memo.
    I am finding the impact of both on the PO as same.

    Hi,
    The difference betwen them is that a credit memo quantity and amount are
    affected but in subsequent credit only the amount is affected nor quantity.
    For example.
    You have in your po history.
    GR    amount  quantity
    x        10          10
    IR (normal invoice)
    x       10           10
    Credit memo
    x      5              5
    Now you have invoice 5 amount 5 quantity
    if you made a subsequent for per example
    amount 5
    in your po history you have pending
    0 amount an 5 quantity
    This quantity you must regularize with transaction MR11
    Transaction mr11 only regularize quantities but not amounts,so for this is used
    subsequent credit/debit.
    I hope my explanation helps you now to understand the differences.
    Best regards.
    Antonio.

  • Credit memo and Subsequent Credit/Debit Scenarios

    Hi All,
    I have to present all the invoicing scenarios to the client. These also include credit memo and subsequent credit/debit.
    Can someone please give me some examples of these. What is the meaning,how to handle,how do these arise.I will have to run these for them on screen.Please can you help me out with these.
    Regards,
    V S

    Hello,
    Subsequent Debit and Credits
    After an Invoice is successfully posted and the transaction is completed, Vendor approaches with additional amount invoice or correction in Invoice.You would like to post this additional invoice with reference to the original PO and item. Subsequent Debit / Credit functionality allows you to capture this difference without canceling original invoice.
    Please check this link
    http://help.sap.com/erp2005_ehp_03/helpdata/EN/a8/b99890452b11d189430000e829fbbd/frameset.htm
    Regards,
    Shailesh

  • Credit memo and subsequent GL account

    Dear All,
    I would like to clarify 3 point below.
    when i do credit memo on full quantity, the double entry is hitting vendor and GRC account.
    when i do credit memo on part quantity, the double entry hitting vendor GRC and stock account also.
    when i do subsequent debit or credit, double entry hitting vendor and stock account.
    1) May I know why credit memo, full quantity only hit GRC whereas part quantity hit GRC and stock?
    2) May i know why subsequent debit/credit hitting stock account only?
    3) credit memo must have to create return PO? without return PO can?
    Thanks

    Hi
    credit memos and subsequent credits can be used to adjust the amount due to the vendor.
    we usually receive a credit memo from a vendor if you where overcharged.
    as in case of invoice .creit memo refer to purchase orders or good receipt
    when you post credit memo,the total invoice quantity in the po history is reduced by the credit memo quantity.the maximum quantity you can make a credit for is the quanitty that has alredy ben invoiced.
    During Credit Memo, It is making same accounting entires as it makes during Invoice posting
    Regards
    kailas ugale

  • Vandor crdit memo, subsequent debit memo and subsequent crdit memo

    Hi,
      what is the difference between subsequent debit, credit and credit memo in MIRO transaction.
       In case of vendor had given us credit note with relevant to particular for which we had already completed the invoice verification and payment also paid.
       in this case what document should i use i.e crdit memo, subsequent credit memo or subsequent debit memo??
    plz suggest

    Hi,
    Difference between Credit memo and subsequent debits/credits
    Subsequent Debits/Credits are used in cases where the quantity is in the original invoice is to remain the same.
    Example:
    PO 10 - $10
    GR 10 - $10
    LIV 10 - $11 (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 reduce amount.
    If you approve of the price increase,
    post the subsequent invoice received as a Subsequent Debit Invoice.
    If it is a credit memo that has been received for reducing $1 of invoice price,
    then post the credit memo as Subsequent Credit.
    This would retain the quantity but reduce the amount.
    Subsequent Debit/Credit is for the case when the credit is not for the full amount
    eg. if the Vendor decided to credit & only the $1 overcharged.
    Credit memo is for the credit of the full amount and value.
    Thanks
    Kalyankumar

  • Difference between Transaction Figures and Line Items

    Hi,
    I gone through FI like FI-GL,FI-AR,FI-AP..there i find...
    Line Items & Transaction figures as main...like
    in FI we have
    Line Items - 0FI_GL_4,0FI_AR_4,0FI_AP_4 etc...
    Transaction Figures - 0FI_GL_6,0FI_AR_6,0FI_AP_6 etc...
    Now Can some please explain...
    what exactly Line Items are?
    What exactly Transaction Figures are?
    How data flows from end to end in FI? i.e where exactly GL,AR,AP comes into picture..how they are internally related?
    Some one please explain me in detail (with expamles if possible) and quick reply is much appreciated...
    Regards
    Ramsunder

    Hi
    What exactly  line items :
    Line items are document items that were posted to a specific account. In contrast to a document item a line item only contains the information from the document that is relevant from the account view.
    You can display the following line items:
    Open items, Cleared items, Noted items, Parked items ,Items with special G/L transactions (in Accounts Receivable and Accounts Payable),Items with customer or vendor items (in Accounts Receivable and Accounts Payable)
    You can display the line items for the following account types:  Customer accounts,Vendor accounts,G/L accounts.
    What exactly Transaction Figures are?
    Transaction figures are the sums of line items on the debit or credit side. The balance is the difference between the debit and the credit transaction figure.
    If you take General ledger
    AP records all accounting transactions for dealings with suppliers(Vendors). Much of its data is obtained from procurement (Materials Management).
    AR records all accounting transactions for dealings with customers. Much of its data is obtained from Sales and Distribution.
    Asset Accounting records all accounting transactions relating to the management of assets.
    Travel Management manages and calculates travel costs and supports travel planning and travel expenses.
    Bank ledger supports the posting of cash flows.
    Regards
    Chandra Sekhar T

  • Credit memo or sub credit for wrong quantity in invoice

    hi,
    vendor invoice printed wrong quantity.
    po $10 * 10 = $100
    migo - dr stock $100
             cr grc      $100
    when receive invoice, additional 2 unit.
    iv $10 * 12 = $120
    in miro, i should not change the quantity as it will affect grc account.
    miro - dr grc                      $100
             dr clearing acc           $20
             cr vendor                 $120
    1 when vendor send in credit note of $10 * 2 = $20, should i create credit memo or subsequent credit?      
    2 how is the accounting entry like?
    thanks

    1) You have to enter the subsequent credit
    2) The account postings for a subsequent debit/credit depend on the quantity that the subsequent debit/credit applies to:
    If the quantity of the subsequent debit/credit is smaller than or the same as the quantity delivered, the system tries to post the subsequent debit/credit to the stock account. If the material is valuated with a standard price or if there is insufficient stock coverage for the quantity to be debited or credited, the amount is posted to a price difference account.
    If the quantity of the subsequent debit/credit is larger than the quantity delivered, the system distributes the relevant amount proportionally. The part of the subsequent debit/credit that does not have a goods receipt is posted to the GR/IR clearing account. The remaining amount is posted to the stock account u2013 or in the case of standard price control or insufficient stock coverage u2013 to a price difference account.

  • AP Credit Memo and Good return, creates differences between TB and Stock Audit Report

    Hello Experts,
    Did any one has ever faced an issue, whereby AP Credit Memo and Good Return creates discrepancy between journal entry and the stock audit report?
    Here is the scenario:
    AP Credit Memo
    Description
    Quantity
    Unit Price
    Total
    Item A
                    30
                3,400
       102,000
    Journal Entry :
    Debit
    Business Partner
         105,000
            Credit
                          Stock
         105,000
    Inventory Audit Report
    Description
    Quantity
    Cost
    Transaction Amount
    Item A
                            30
                         3,500
                                                    105,000
    Journal Entry :        
    Debit
    Business Partner
         105,000
            Credit
                          Stock
            105,000
    The difference is actually due to the moving average, but the strange part is why the difference is not posted in the journal entry, in the Price different account?
    This makes the stock account amount to be different from the Trial Balance and the Stock Audit Report.
    And this is applied also on the Good Return transaction.
    Any help is highly appreciated.
    Best Regards
    Cedric Kayitare

    Hi Cedric,
    Price & Item cost are different.
    while making goods return , Direct AP Credit Note, Sales Delivery, Direct AR Invoice, stock is going outside.
    In these transactions Journal entry will happen for Item cost and not Item sales or Purchase price.
    Please enable item cost field in line level and check whether above formulae is matching with Item, cost field.
    Then what is the importance of price in these documents??
    Price is the agreed selling or purchase price for trading with Customer and supplier.
    In your example
    You are returning back material worth 105000(as per moving average price), but supplier is supposed to give only you 102,000.
    Hope you understand
    Thanks
    Unnikrishnan

  • Technical difference between credit memo and invoice

    Hi,
    What is difference between transaction invoice and credit memo that are created in transaction FB60 and FB65.( is there any field that can exactly differentiate between these transaction types)
    Regards
    paveee.

    Hi Praveen,
    I think this is not related workflow question but i know the some difference fields in b/w these two.
    Vendor Invoice (FB60)
    Incoming Credit Memos (FB65)
    Incoming Credit Memos:
    As required fields:
    · Transactn
    · Bal.
    · Vendor
    · Document date
    · Doc. type
    · Posting date
    · Reference
    · Amount
    · Currency
    · Text
    · Company code
    Vendor Invoice
    As required fields:
    ·         Transactn
    ·         Bal.
    ·         Vendor
    ·         Invoice date
    ·         Doc. type
    ·         Posting date
    ·         Reference
    ·         Amount
    ·         Currency
    ·         Text
    ·         Baseline date
    ·         Company Code
    Thanks and Regards,
    Prabhakar Dharmala

  • Link between Credit Memo and Dispute Case

    Hi,
    Please help me. How to Link between Credit Memo and Dispute Case
    Thaks,
    Vinod.

    Linking a credit note has nothing to do with EHP4 or 5. You have to do a config sertting:
    Dispute Management-Process Integration with Accounts Receivable Accounting-Assignment of Open Credits and Payments-Activate Assignment of Open Credits and Payments
    And make sure the business adapts the correct process:  When you reverse a charge on a debit invoice you have to make sure the credit is properly linked to the debit note.
    If this is the case then the credit will show up in the dispute case.
    Rgds,
    Richard

  • Credit memo, subsequent debit and subsequent credit

    Hi,
       We have recently started using credit memo, subsequent debit and subsequent credit in SAP.
       However, when ever  user is taking print of this documents system is still showing as invoice verification note only
      We want to differentiate this documents with other document types. could u plz explain me the config settings for this doc types provided by standard SAP.

    Transaction OBA7, define document types which you require. Then, SPRO -> AR/AP -> Business transactions -> Outgoing invoices, credit memos -> Outgoing Invoices/Credit Memos - Enjoy -> Define Document Types for Enjoy Transactions. There you can define that new document types are default for process you want
    regards

  • Difference between sales order and credit order

    Hi friends,
    can any explain about difference between sales order and credit order in SAP.
    Thanks and Regards.

    Hi Narayana,
    This Depends upon your Client Requirement.
    If you are using the Credit Management to your client. then you maintain certain checks like Simple Credit, Automatic Credit at Sales Order Level.
    If the Client want a seperate Document type for Credit Sales and Normal Sales if having Purpose.
    Other wise you can use only one Document type for both,because in Standard Sap, For Cash Sale have seperate Document type.
    Please Reward If Really Helpful,
    Thanks and Regards,
    Sateesh.Kandula

  • Diff bet credit memo and credit memo request

    Hi
    Can any one tell the difference between Credit Memo and Credit Memo Request
    Thanks in advance

    Hi,
    Below is the information on crdit memo request.
    Definition: A credit memo request is a sales document used in complaints processing to request credit for a customer.
    Use: 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.
    Structure: A credit memo request is another type of sales document like a standard order. For more information on sales documents, see Working with Sales Documents.A credit memo request starts the billing process.
    =============================================
    Below mentioned is the information on Credit Memo.
    Definition: The term credit memo always refers to a credit memo from the vendor. Therefore, posting a credit memo always leads to a debit posting on the vendor account.
    Use: As in the case of invoices, credit memos refer to purchase orders or goods receipts. They are used to correct the purchase order history if the quantity invoiced was too high, for example, if an invoice was too high or if part of the quantity was returned.
    When you post a credit memo, the total quantity in the purchase order history is reduced by the credit memo quantity.
    If you do not want the total quantity invoiced to be reduced, you must post the credit memo as a subsequent credit.
    Hope this helps. Please let me know if you need more information and please assign points.
    Rgds
    Manish

  • Credit Memo and Debit Memo in AP and AR

    Hi ,
    Can some please explain the difference between debit memo, credit memo in AP and AR. Please explain with examples......
    Regards,
    Anil

    Hello.
    A CM in AP represents a credit in your favour, normally issue by your vendor, with the following accounting:
    DR Liability
    CR Cost
    You can deduct the CM by including it in a payment or, if you vendor send money to pay it, you can create a Refund payment type.
    A CM in AR represent a credit in the favour of you customer, normally issue by you, with the following accounting:
    DR Revenue
    CR Receivables
    Your customer, while sending you a payment, may include the CM in that payment, thus reducing it's amount.
    Hope it helps.
    Octavio.

  • Credit Memo and A/R Invoice linking

    Hi
    Please help me, how to find relation field  between Credit Memo and A/R Invoice.
    I delete invoice using credit memo with copy from function.
    But when I view last credit memo, i cant find the corelation with my deleted A/R invoice number.
    I found remarks, but i think remarks is not the link for document.
    I really confuse about this. can anyone help me?
    ps: i cant found the relation return and A/R invoice too..
    Thanks so muchh

    Just thought of another trick or two that you might try...
    1.  Open ANY Credit Memo and use the "Find" Icon (the binoculars in the Icon Line) or use "Ctrl+F" to put the credit memo window in find mode.  Put an asterisk in the field where the credit memo number usually is and hit enter...
    It should pop up a list of all credit memos with Remarks - look to see if your credit memo is there.  Or you can sort the whole screen by double clicking on the "Due Date" column of the display. 
    You can view an individual credit memo by highlighting the line (making it yellow) and pressing Enter Key to check that out also...
    2. If that does not work for you, you can always use the SQL route where the OINV.DocEntry = RIN1.DocEntry and get a list that way where you can look through it.
    OINV = Invoice Headers and RIN1 = Credit Memo Lines
    Good Luck - Zal

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