Interested to Buy Any Domain ? << Click Here >> for more details...
In Accounts Payable credit memo and debit memo are entered
with -ve amount but in Accounts Receivable why credit memo
has -ve amonut and debit memo + ve?
- 6 Answers
- 51572 Views
- Silicon Valley, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / kasi rajan
In Payable we are receving the material from supplier.
so we have to pay the amount to the supplier.
in case supplier has send the good more than what we order
at the point of we have to return the goods reduce the
accounting balance.
we send a memo to the supplier is called as debit memom
or supplier send a memo is called as credit memo. both of
the reducing our liability.
In AR module.
we are selling the product to the customer.
either we may forgot to added a freight charges or some
other thing. So we have to increase the balance of the
customer. so we add debit memo
in case we charge more than the product value so we have
reduce the amout.
thanks
| Is This Answer Correct ? | 50 Yes | 6 No |
Answer / swathi
In Oracle terms
credit memo and debit memo decrease the liability and they
are applied against an invoice.
The only difference is
credit memo is initiated from supplier end
Debit memo is initiated from our end.
If we want to increase the liability in payables either you
have to create a seperate invoice or do some workaround to
achieve it through DM/CM.
IN Receivables the concept is pretty clear as credit memo
has -ve amount and debit memo is +ve.
| Is This Answer Correct ? | 50 Yes | 7 No |
Answer / prashanth jonnala
In Payables Debit Memo and Creidt Memo functionality is same
It decreases the supplier balance (i.e decreases the
liability)
Eg
Supplier has send you invoice X with an amount of $100 but
later we found there is mismatch in quantity (more quantity
billed)so we will inform to customer. Then customer has
send you the credit memo but if customer says send me the
debit memo then you will generate debit memo from your end.
Both are same as a functionality.
In Receivables Debit Memo increases the customer balance
like invoice. If you forgot to add anything in the original
invoice, you can raise debit memo.
But if you billed more on your customer then you need to
raise credit memo to give credit back to your customer
account.
| Is This Answer Correct ? | 22 Yes | 3 No |
Answer / raghuka
In general debit memo for receivables will increse AR
balance and credit memo will decrease.
The assumption in AP is that if there is a difference in
invoice and is noticed by buyer he will send the debit memo
with -ve amount to decrease payable balance, if the
discrepancy is already notified and supplier sends the
credit memo, buyer will record it with -ve sign.
one more way of Anyalyzing is Debit memos are sent by
suppliers to increase their AR balance but when buyer sends
he record with -ve sign
Comments Appreciated.
| Is This Answer Correct ? | 14 Yes | 6 No |
Answer / nilanjan
In AR Debit Memo will increase the customer balance amount.
If we want to increase our invoice amount which was not
there at the time of creation of invoice that time we have
raise a Debit Memo to the customer.
But in case if we have already charged more amount in
invoice for our customer the definately we need to rasie a
Credit Memo and informed to our customer for the credit back
to the extram amount which we have already charged to our
customer.
Thanks !!!!!
| Is This Answer Correct ? | 4 Yes | 1 No |
You created a set of book , where you will attach this SOB in AP?
11 Answers HCL, IBM, TCS,
How do write a discoverer report to identify zero dollar suppliers/invoices where the supplier is on hold?
What is the formula for funds available ?
in mass addition normally there is an interface that runs from AP to add the items into FA...when does this process occur..is it during the month end after AP closing & is it an automated process.. Is it possible to run any interface in the middle of the month if u want to populate one specific item from AP
Let me know to Support projects life cycles details?
Oracle financials talk of Set of Books. However at the beginning of an implementation, when you talk of set of books to the CFO, he will most likely tell you that 'He has just an accounting book for the organization'. So he feels that he does not need 'Set of Books'. How can you reconcile the above two statements?
What is the Process of Fixed Asset From Inducation to Disposal & what are the journal entry in GL , AP AND IN OTHER MODULES
3. accounting entries p2p.
What is Mo security profile and Mo operating unit? Why use this profile option ?
Hi all, I have setup my AP and created 3 invoice batches which as seen validated yet when i try to make payment i get the following error"APP-SQL - 10006: the date you entered is not an open accounting period." I have opened the calendar for that month yet it giving me this error. Any help will be appreciated.
What is the difference between accrue at period end and accrue on receipt?
how data is transferred from interface table to base table ?
Oracle Apps Technical 
