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Senario of India Greate

A credit memo is used when the full amount of the original invoice needs to be credited, while subsequent debits/credits are used when only a partial amount needs adjustment and the original quantity stays the same. A subsequent debit/credit posts an additional invoice or credit memo to correct pricing without changing the quantity from the original. A credit memo credits the full amount and value of the original invoice.

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Kumar Ajit
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63 views1 page

Senario of India Greate

A credit memo is used when the full amount of the original invoice needs to be credited, while subsequent debits/credits are used when only a partial amount needs adjustment and the original quantity stays the same. A subsequent debit/credit posts an additional invoice or credit memo to correct pricing without changing the quantity from the original. A credit memo credits the full amount and value of the original invoice.

Uploaded by

Kumar Ajit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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

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