10/8/22, 6:12 PM Define Debit note and Credit note.
Protected learning content Open
and
SAP SD (Sales and Distribution) » SAP SD (Sales and userTutorial
Distribution) information
Define Debit note and Credit note.
Protected learning content and user Open
information
Debit note and Credit note Definition, Function, Format
Definition:
A Credit note is a monetary document used to exchange for goods of equal value, issued by a seller to a buyer.The credit note
usually cannot be exchanged for cash.It can also be a document from 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.
Debit note is the documents that provide a debtor with information regarding an outstanding debt.When goods are returned to
the supplier, a Debit Note is made out of his name. A debit note is issued by the lender or creditor and serves as either
notification of a debt that will be invoiced shortly or a reminder of a debt that was previously invoiced and is currently
outstanding. While an invoice is also an official notification of a debt owed, it is not considered to be a debit note.
Function:
A Credit note or Credit memo is a transaction that reduces Amounts Receivable from a customer. For eg. If the goods do not
meet the buyer's specifications and are returned.
Debit note or Debit memo is a transaction that reduces Amounts Payable to a vendor because you send damaged goods back to
your supplier.The main function of a debit note is to provide a secondary document to the buyer that calls attention to a debt. A
debit note sometimes is helpful when an invoice is misplaced or never reaches the buyer, as the document provides the buyer
with everything he or she needs to settle the outstanding debt.
Format:
Atally Sofper
Experience simpler and faster way of working. To
grow your business.
Attally Sofper Open
Form or letter sent by a seller to a buyer, stating that a certain amount has been credited to the buyer's account. Also called
credit memo, it is issued in various situations to correct a mistake.
The typical debit note is in the form of a letter or some type of document format that is implemented by the company to serve
as a reminder. Collection letters that are sent out when an invoice is not paid within terms often use a simple “reminder” letter
format that calls attention to the fact that the amount owed has not been paid. As time goes on and the balance remains unpaid,
×
the verbiage of the debit note may shift from a friendly reminder to a demand for payment.
https://www.stechies.com/what-is-debit-note-and-credit-note/ 1/5
10/8/22, 6:12 PM Define Debit note and Credit note.
DEBIT IS A PURCHASE RETURNS:
Debit note is a document prepared by Business sent to the supplier. It is issued in various situations to correct a mistake, such
as when (1) an invoice amount is overstated, (2) correct discount rate is not applied, (3) goods spoil within guaranty period, or
(4) they do not meet the buyer's specifications and are returned.
Debit note contains returnable goods Qty, reasons for returns
CREDIT NOTE IS A SALES RETURNS:
Credit note is a document prepared by customer sent to the business.
Credit note contains returnable goods Qty, reasons for returns
Note:
To block the credit or debit memo request from being billed in Customizing.
Go to Sales -> Sales Documents -> Sales document header -> Define sales document type and select the billing block field in
the billing section.
This request can later be reviewed along with similar ones, - if necessary, by another department. The request for a credit or
debit memo can then be approved or rejected.
Protected learning content
Open
and user information
Comments
10 Apr 2010 8:09 am Guest
when we made a sales bill to the customer , the rate of the quantity mentioned is less than the rate mentioned in price
list.Please give me the suggestion.
17 Oct 2012 11:05 am Guest
we have supplied material to our customer.Transportation charges have to be paid by them but they had not paid it.Please
suggest me whether to send credit note or debit note.
Recommended Posts:
SAP SD Training Tutorials for Beginners
SAP SD T-codes
SAP SD User Exit for Billing Document
SAP SD User Exits for Sales Order
SAP Customer Down Payment Configuration
SAP PGI (Post Goods Issue)
SAP Incoterms
SAP SD Variant Configuration Steps ×
SAP SD Configuration Step by Step Guide
SAP SD Credit Management Interview Questions
https://www.stechies.com/what-is-debit-note-and-credit-note/ 2/5
10/8/22, 6:12 PM Define Debit note and Credit note.
Account Assignment Group In SAP
Difference Between Rebate And Discount
Movement Type In SAP
SAP SD Availability Check Configuration
Debit And Credit Note in SAP
Sales Documents List
Intercompany vs Intracompany
SAP SD Pricing Routines & User Exit
SAP SD Invoice Table
SAP SD Interview Questions
Follow Us
Contact Information
#3940 Sector 23,
Gurgaon, Haryana (India)
Pin :- 122015
[email protected]
Top Tutorials
SAP Tutorial
SAP HANA Tutorial
SAP BASIS Tutorial
Android Tutorial
Python Tutorial
Java Tutorial
×
Hadoop Tutorial
Photoshop Tutorial
https://www.stechies.com/what-is-debit-note-and-credit-note/ 3/5
10/8/22, 6:12 PM Define Debit note and Credit note.
Difference Between Article
Interview Questions
Top Interview Questions
ABAP Interview Questions
BASIS Interview Questions
HANA Interview Questions
SD Interview Questions
FICO Interview Questions
Hibernate Interview Questions
QTP/UFT Interview Questions
Tableau Interview Questions
TestNG Interview Questions
Hive Interview Questions
Quick Links
Write for us
Career Guidance Tool
SAP Transaction Codes
Sample Resume
Institutes
SAP PDF Books
Classifieds
Recent Articles
Contact Us
About Us
Terms of Use
Privacy Policy
Cookies Policy
All the site contents are Copyright © www.stechies.com and the content authors. All rights reserved. All product names are trademarks of their respective companies. The site
www.stechies.com is in no way affiliated with SAP AG. Every effort is made to ensure the content integrity. Information used on this site is at your own risk. The content on this site may not be
reproduced or redistributed without the express written permission of www.stechies.com or the content authors.
https://www.stechies.com/what-is-debit-note-and-credit-note/ 4/5
10/8/22, 6:12 PM Define Debit note and Credit note.
https://www.stechies.com/what-is-debit-note-and-credit-note/ 5/5
