Debit/Credit memo

Question

I am confused whenever i come across the term Debit/credit.... here in MM point of view where we use this Debit memo and credit memo..
I am new to this pls tell me the following steps how to do that debit/credit memo..

Answer 1

Hi
DEBIT MEMO
The Debit Memo process is used for applying a debit to a customer account once a determination has been made that a customer has been undercharged as a result of a pricing or sales tax rate error. A Debit Memo Request is then created with the amount to be Debited, and placed on a billing block for review. It must then be released to become billing relevant, and appear on the billing due list. Periodic billing process creates a Debit memo to be sent to the customer, and posts an accounting document.
.CREDIT MEMO
You post a credit memo if too large an amout has been invoiced ,the total invoice quantity in the p.o history is reduced by the credit memo quantity
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.
Thanks