Credit memo or invoice vs subsequent credit/debit

Question

hi,
after invoice is posted, there is a correction from vendor. no quantity change. only value change.
1 if only value affected, can i create credit memo with reference to PO rather than use subsequent credit? still giving the same result right?
2 if only value affected, can i create invoice with reference to PO rather than use subsequent debit? still giving the same result right?
thanks
rgds

Answer 1

Hello Eliana  ,
1 if only value affected, can i create credit memo with reference to PO rather than use subsequent credit? still giving the same result right?
No , if only value changes, you have to use subsequent credit / debit. Credit memo is used to reduce the vendor liability with change in qty.
Credit memo is done in case of material to be returned to vendor. When you post a credit memo, the postings are reversed from the GR/Ir clearing account and the vendor account. But when you post a subsequent credit/debit the postings will be to the stock account and the vendor account.
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.
2 if only value affected, can i create invoice with reference to PO rather than use subsequent debit? still giving the same result right?
No, if you create one more invoice, the qty invoiced will be increased by the qty you mention in the invoice.
ie if you have posted an invoice for 100 qty @ 10 per qty and again if you try to post the difference amount of 250 for total 100qty, system will update the invoice qty as 200, and it is wrong.
You have to use subsequent credit/debit.
So the thumb rule is that, if only value changes after Invoice verification, use subsequent credit/ debit and if there is qty and value changes, use credit memo / invoice.
Regards
Gregory Mathews