Subsequent debit, subsequent credit and credit memo?

Dear Gurus,
Kindly explain subsequent debit, subsequent credit and credit memo with one simple example..pls..
Thanks..

Hi,
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.
Credit Memo u2013 A credit memo is received from a vendor if you were overcharged on a previous invoice. It is processed as a reversal of a previous invoice on a quantity and value basis referencing a Purchase Order. In the same way the system assumes a corresponding goods receipt was posted for the original invoice, the system assumes a credit memo is linked to the reversal of a goods receipt. You must change the transaction from Invoice to Credit memo.
Subsequent Credit u2013 You receive a credit memo from a vendor decreasing the total invoiced value on a previous invoice, not the total invoiced quantity. You must change the transaction from Invoice to Subsequent credit.  It is a reduction of value but not quantity by the amount of the credit memo.
Subsequent Debit u2013 You receive an additional invoice from a vendor because you were undercharged, increasing the total invoiced value, not the total invoiced quantity. You must change the transaction from Invoice to Subsequent debit. It is processed as an increase in value but not the quantity by the amount of the additional invoice.
Hope it helps,
Swapnil

Similar Messages

  • Subsequent debit, credit and credit memo

    Hi,
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       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
    You need to use a credit memo.
    Subsequent debit is used if you have already invoiced
    You have already received an invoice from your vendor for all the goods received. Subsequently, freight costs are to be taken into account, however, the invoice quantity remains the same.
    Subsequent credit is used if you already have done a credit memo on the PO
    You have already received a credit memo from your vendor for all the goods received. Subsequently, freight costs are to be credited to your company, however, the credit memo quantity remains the same.
    Thanks & Regards
    Kishore

  • Difference between Subsequent credit and Credit memo

    Hi,
    Please tell me what is differnece between Subsequent credit and Credit memo.
    You shoud give me on business exmple
    Thanks and Regards
    Anil Patil

    Hi Anil,
    For CREDIT MEMO
    A Credit Memo (short for "credit memorandum") is a commercial document issued by a seller to a buyer, listing the products, quantities and agreed prices for products or services the seller provided the buyer, but the buyer did not receive or returned. It may be issued in the case of damaged goods, errors or allowances. In respect of the previously issued invoice, a Credit Memo will reduce or eliminate the amount the buyer has to pay.
    The Credit Memo usually contains: PO #, Date, Billing Address, Shipping Address, Terms of Payment, List of products with quantities and prices. Usually it references the original Invoice and sometimes states the reason for issue.
    Credit Memos are often called Credit Notes or just Credits.
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    The term may also refer to the document provided by a bank to a depositor to indicate the depositor's balance is being increased because of an event other than a deposit, such as the collection by the bank of the depositor's note receivable.
    SAP 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.
    Regards,
    VB

  • Regarding Subsequent debit,credit and cdedit memos

    Hello Gurus,
    Could any body explain the above said subject and when this scenario will be used pls give some examples.
    regards
    rk

    Hi,
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    A subsequent debit/credit changes the total invoice value of a purchase order item; the total invoice quantity remains unchanged. Therefore, only a value-based update of the purchasing transaction takes place. There is no quantity-based
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    1. Subsequent Debit :-You must enter an invoice as a subsequent debit if a purchase order item has already been invoiced and further costs are now incurred. (Example: A vendor has inadvertently invoiced you at too low a price and then sends a
    second invoice for the difference.)
    2. Subsequent Credit :- You must enter a credit memo as a subsequent credit if a purchase order item was invoiced at too high a price and you have now received a credit memo. (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 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. You can only enter a subsequent debit/credit for a purchase order item if an invoice has already been posted for this item.
    A subsequent debit/credit cannot refer to a particular invoice.
    Subsequent debits and credits are listed separately in the PO history.
    3. Credit Memo :- You usually receive a credit memo from a vendor if you were overcharged. As is the case for invoices, credit memos refer to purchase orders or goods receipts.
    You post a credit memo if too large an amount has been invoiced. When you post the credit memo, the total invoiced quantity in the PO history is reduced by the credit memo quantity. The maximum quantity you can make a credit for is the quantity that has already been invoiced.
    In the same way as the corresponding goods receipt is expected or posted for the invoice, in the case of a credit memo, the system assumes that the credit memo belongs to a return delivery or reversal of the goods receipt. This means that the credit memo is settled using the GR/IR clearing account.
    Regards,
    Pardeep Malik

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  • Subsequent debit and Credit in MRIO

    Hi,
    I know the Invocie and credit memo in MIRO when we are posting the invocie we have to use the invocie option and in case we return the material we can use the credit memo, I wan tto know when we have to use subsequent debit / credit what its exact use.
    regards,
    zafar

    Hi,
    Subsequent debit and Credit  are executed after invoice verification. 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. First let me clarify the terms Subsequent debit /Credit and credit memo.
    1. Subsequent Debit :-You must enter an invoice as a subsequent debit if a purchase order item has already been invoiced and further costs are now incurred. (Example: A vendor has inadvertently invoiced you at too low a price and then sends a
    second invoice for the difference.)
    2. Subsequent Credit :- You must enter a credit memo as a subsequent credit if a purchase order item was invoiced at too high a price and you have now received a credit memo. (Example: A vendor has inadvertently invoiced you at too high a price and then sends a credit memo for the difference. Please refer below link for better clarity.
    A subsequent debit/credit cannot refer to a particular invoice. Subsequent debits and credits are listed separately in the PO history.
    3. Credit Memo :- You usually receive a credit memo from a vendor if you were overcharged. As is the case for invoices, credit memos refer to purchase orders or goods receipts. Hope this will resolve your issue. Thanking you

  • 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

  • Subsequent debit to post to GL instead of vendor account

    Hi
    We will debit to stock account and credit to vendor account for unplanned charges thru subsequent debit. Due to business requirements to post the unplanned charges to GL account instead of vendor account. The desired entries are debit stock account and credit to GL-prepayment account. Users would like to track the prepayment incurred for the services. Are we able to configure the posting to GL account instead of to vendor account thru subsequent debit? You advice is much appreciated.
    Regards
    Kang Ring

    Hi Kang Ring Toh ,
    You can do..
    In this scnario. you should activate Authorization  G/L account tab in MIRO.
    spro>MM>LIV->incoming invoice>activate direct posting to GL account
    Then in MIRO you You can view the additonal 2 tab will shown.
    after enter the PO number you can chooose the G/L account tab & post it to particular G/L Account.
    SAM

  • Subsequent debit function for MRKO settlement

    Hi,
    We have one business requirement for one of our client,
    The business requirement is ERS - Automatic invoice settlement  is paid for the amount of Rs 150 for the  qty of 10. After the automatic invoice settlement via using t.coe MRRL, We can able to Post the subsequent debit for the for qty of 10 and amount increased of 200 by vendor. Incase of price changed by vendor after settlement through the ERS we can post the excess amount  using subsequent debit settled accordingly.
    The same requirement is needed for Consignment and Pipeline settlment (MRKO) function also,but however we settled the invoice using MRKO after that in MIRO transaction not able to post the corrosponding subsequent debit.
    Any other setting is require to post the subsequent debit for consignment and pipe line?
    How to settle the excess amount in case of price change of consignment invoice?
    - Regards,
       Velu

    Hi,
    ERS - Automatic invoice settlement  is always refer the PO .
    so, you can post the Subsequent debit if price increase. because price dertermined from Purchase Order.
    But MRKO. the Price determined from Info record.
    If the Info record the how can we use subsequent debit option.
    also MRKO is the process to intimate to consignment vendor about the cunsumption only. it won't determine any price.
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    SAM
    Edited by: Saminathan Gopalan on Jun 23, 2010 3:04 PM

  • 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

  • Miro debit/credit note and subsequent debit/credit

    Dear all,
    May I know under what circumstances we use debit/credit note and
    under what circumstances we use subsequent debit/credit
    Need advice.
    Thanks

    Hi,
    A subsequent debit/credit arises if a transaction has already been settled, and a further invoice or credit memo is received afterwards.
    A subsequent debit/credit changes the total invoice value of a purchase order item; the total invoice quantity remains unchanged. Therefore, only a value-based update of the purchasing transaction takes place. There is no quantity-based
    update.
    1. Subsequent Debit :-You must enter an invoice as a subsequent debit if a purchase order item has already been invoiced and further costs are now incurred. (Example: A vendor has inadvertently invoiced you at too low a price and then sends a
    second invoice for the difference.)
    2. Subsequent Credit :- You must enter a credit memo as a subsequent credit if a purchase order item was invoiced at too high a price and you have now received a credit memo. (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 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. You can only enter a subsequent debit/credit for a purchase order item if an invoice has already been posted for this item.
    A subsequent debit/credit cannot refer to a particular invoice.
    Subsequent debits and credits are listed separately in the PO history.
    3. Credit Memo :- You usually receive a credit memo from a vendor if you were overcharged. As is the case for invoices, credit memos refer to purchase orders or goods receipts.
    You post a credit memo if too large an amount has been invoiced. When you post the credit memo, the total invoiced quantity in the PO history is reduced by the credit memo quantity. The maximum quantity you can make a credit for is the quantity that has already been invoiced.
    In the same way as the corresponding goods receipt is expected or posted for the invoice, in the case of a credit memo, the system assumes that the credit memo belongs to a return delivery or reversal of the goods receipt. This means that the credit memo is settled using the GR/IR clearing account.
    Regards,
    Pardeep Malik

  • Pls. give some suggestion on Subsequent Credit and debit note?

    Dear Gurus,
    Pls. give some suggestion on Subsequent Credit and debit note?
    Regrds
    Shikha

    Hi Sikha
    We generaly use subsequent debit / credit to adjust invoice value without affecting Qty
    Pls check notes supplied by SAP
    A subsequent debit/credit arises if a transaction has already been settled, and a further invoice or credit memo is received afterwards.
    A subsequent debit/credit changes the total invoice value of a purchase order item; the total invoice quantity remains unchanged. Therefore, only a value-based update of the purchasing transaction takes place. There is no quantity-based update.
    You must enter an invoice as a subsequent debit if a purchase order item has already been invoiced and further costs are incurred. (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. (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 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.
    You can only enter a subsequent debit/credit for a purchase order item if an invoice has already been posted for that item.
    A subsequent debit/credit cannot refer to a particular invoice.
    Subsequent debits and credits are listed separately in the PO history
    Typical example is like
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    In such scenario u can post subsequent debit to correct PO without affecting Qty. field
    <b>Reward if usefull</b>
    Vishal..

  • Subsequent debit and credit

    Dear Sap team
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    Regards,
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    Please search forum before posting,lot of threads discussed about subject briefly and also refer sap help documentation
    it will you to understand clearly about this topic in LIV.

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

    Hi Ram,
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