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    Subsequent Debit and Credit

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    satishnettmi
    Subsequent debits and credits allow vendors to correct invoices in SAP if an invoice amount was over or under billed. A subsequent debit is used to invoice additional costs later, while a subsequent credit reduces previously invoiced costs. When posting a subsequent debit or credit, the quantity being corrected must be specified and it only updates values, not quantities. The posting impacts stock and price difference accounts depending on the material's valuation method.

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    Subsequent Debit and Credit

    Uploaded by

    satishnettmi
    41 views1 page
    Subsequent debits and credits allow vendors to correct invoices in SAP if an invoice amount was over or under billed. A subsequent debit is used to invoice additional costs later, while a subsequent credit reduces previously invoiced costs. When posting a subsequent debit or credit, the quantity being corrected must be specified and it only updates values, not quantities. The posting impacts stock and price difference accounts depending on the material's valuation method.

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    Subsequent debits and credits allow vendors to correct invoices in SAP if an invoice amount was over or under billed. A subsequent debit is used to invoice additional costs later, while a subsequent credit reduces previously invoiced costs. When posting a subsequent debit or credit, the quantity being corrected must be specified and it only updates values, not quantities. The posting impacts stock and price difference accounts depending on the material's valuation method.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views1 page

    Subsequent Debit and Credit

    Uploaded by

    satishnettmi
    Subsequent debits and credits allow vendors to correct invoices in SAP if an invoice amount was over or under billed. A subsequent debit is used to invoice additional costs later, while a subsequent credit reduces previously invoiced costs. When posting a subsequent debit or credit, the quantity being corrected must be specified and it only updates values, not quantities. The posting impacts stock and price difference accounts depending on the material's valuation method.

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    © All Rights Reserved
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    Subsequent Debits/Credits

    updated Dec 23, 2008 1:42 pm | 5,815 views


    Introduction
    Sometimes it is quite possible in the normal course of business that vendor may over/under invoiced the
    business for a delivery. There may be various reasons for this. If this is the case and the vendor invoice
    has already been posted by the business into the system, then there is a strong need for correction of this
    invoiced amount.
    In standard SAP, this correction is done by means of subsequent Debits/Credits. Here one should not
    confuse himself with the term Credit Memo. Credit Memo is totally different from Subsequent
    Debits/Credits

    Subsequent Debits
    If a transaction has already been invoiced and additional costs are invoiced later, a subsequent debit is
    necessary. In this case, you can debit the material with the additional costs.
    Subsequent Credits

    If a transaction has already been invoiced and costs already posted are reduced at a later date, a
    subsequent credit is necessary. In this case, you can credit the material with the reduced costs.

    While posting an invoice or a credit memo as a subsequent debit/credit, the following points needs
    consideration:
    It is not possible to post a subsequent debit/credit before an invoice. Quantity needs to be specified for
    which the costs are to be posted. Subsequent debit/credit leads to only value updates not quantity
    updates. Purchase order history is updated with every subsequent debit/credit.

    Valuation & Stock Account Updates
    When a material is valuated at Moving Average Price, based on the quantity specified, while entering a
    subsequent debit/credit, the system checks for availability of quantity in the stock, if sufficient stock is
    available then subsequent debit/credit is posted to stock account and if sufficient coverage does not exist
    for this quantity, only the portion for the available stock is posted to the stock account. The rest is posted
    to a price difference account. This way, the posting does cause a change in value in the material master
    record to the tune of amount posted to stock account.

    When a material is valuated at a standard price, the subsequent debit/credit is posted to a price
    difference account. This way, the posting does not cause a change in value in the material master record.

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