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SAP MM FICO With Scenario

The document discusses subsequent debit/credit and credit memos in accounts payable. A subsequent debit increases an invoice amount if additional costs are added later, while a subsequent credit decreases the amount. A credit memo is issued by a vendor to reduce an invoice if items were faulty or the quantity was incorrect.

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Raju Raj Raj
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108 views8 pages

SAP MM FICO With Scenario

The document discusses subsequent debit/credit and credit memos in accounts payable. A subsequent debit increases an invoice amount if additional costs are added later, while a subsequent credit decreases the amount. A credit memo is issued by a vendor to reduce an invoice if items were faulty or the quantity was incorrect.

Uploaded by

Raju Raj Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SUBSEQUENT DEBIT/CREDIT , CREDIT MEMO

Subsequent debit/credit & credit memo is done only after invoice

SUBSEQUENT DEBIT

 Subsequant debit is done after invoice to adjust the value of material


(increase)
 By using subsequent debit fraight cost or other cost are taken into account
 Quantity remain same value changes

BUSINESS SCENARIO

 Same P2P process we generate po for a material 1000 rs each pc for qty 20
nos. vendor deliver ther material we generate good receipt and invoice.
 After invoice generate Vendor says globally oil rate is increase globally so
that he wants to increase the cost 10 rs each per pc
 But we can not change the invoice value after generate therefore we create
subsequent debit ( additional value to be pay).

[email protected]
STEP 1 : CREATE PURCHASE ORDER , GOOD RECEIPT , INVOICE

SR NO DETAIL VALUE NUMBER

1 PURCHASE ORDER 1000 X 20 =20000 4500024221

2 GOOD RECEIPT 1000 X 20 = 20000 5000002775

1000 X 20 +19%
3 INVOICE 5105610127
TAX = 23800

STEP 2 : CREATE SUBSEQUENT DEBIT

 Now after invoice generated vendor says i need extra amount because brg
rate is increase by 10%
 I.e vendor need 100 rs extra for each brg . After negotiation we post
subsequant debit . So that additional payment we have to give to vendor.

SELECT INVOICE
TYPE

NOTE

PO NUMBER

AMOUNT NEED TO BE EXTRA


PAY

[email protected]
STEP 3 : CHECK INVOICE ENTRY

2000 AMOUNT WE
HAVE TO EXTRA
PAY

 There are two or more scenario for subsequant debit/credit like


sometime vendor fail to add fraight charges at time subsequant debit
is used to add value

[email protected]
SUBSEQUENT CREDIT

 Subsequant credit is done after invoice to adjust the value of material


(decrease)
 Quantity remain same value changes (decrease)
 Subsequent credit is given by company to vendor

BUSINESS SCENARIO

 Same P2P process we generate po for a material 1000 rs each pc for qty 20
nos. vendor deliver ther material we generate good receipt and invoice.
 After invoice generate Vendor says due to price changes we have reduce the
price of each product and we have given you Discount
 To reduce the invoice value we have to add enter subsequent credit

[email protected]
STEP 1 : CREATE PURCHASE ORDER , GOOD RECEIPT , INVOICE

SR NO DETAIL VALUE NUMBER

1 PURCHASE ORDER 2500 X 10 =20000 4500024222

2 GOOD RECEIPT 2500 X 10 = 20000 5000002777

2500 X 10 +19%
3 INVOICE 5105610129
TAX = 29750

STEP 2 : CREATE SUBSEQUENT CREDIT

 After invoice vendore says due to prioce inflamiation price is reduced and
we can give you 400rs discount for each brg then we generate subsequant
credit

DOCUMENT TYPE

PO NUMBER

DISCOUNT PRICE
VALUE REDUCE

[email protected]
STEP 3 CHECK INVOICE HISTORY

4000 VALUE
REDUCED FROM
TOTAL

CREDIT NOTE/MEMO

 They are used to correct the purchase order history if the quantity invoiced
was too high
 Credit memo is received from vendor
 If you do not want the total quantity invoiced to be reduced you can post the
credit memo as a subsequent credit

BUSINESS SCENARIO

 If plant Received qty 100 nos x 10 rs each , purchase team make good
receipt invoice for vendor
 But after receiving we open the 100 box we fount 30 nos brg is damaged
 So purchase team call the vendor , vendor says he well give credit memo
team enter the credit memo/note to reduce qty & price.

[email protected]
STEP 1 : CREATE PURCHASE ORDER , GOOD RECEIPT , INVOICE

SR NO DETAIL VALUE NUMBER

1 PURCHASE ORDER 100 x 10 4500024226

2 GOOD RECEIPT 100 x 10 5000002778

100 X 10 +19%
3 INVOICE 5105610131
TAX = 1190

STEP 2 : CREATE CREDIT MEMO/NOTE

 Vendor send credit memo/note to reduce the invoice value for


faulty item , purchase team enter in system to reduce the
invoice

DOCUMENT TYPE

PO NUMBER

5 QTY DAMAGED SO I
ENTERED 5 QTY AND VALUE

[email protected]
STEP 3 CHECK INVOICE HISTORY

QTY AN AMOUNT
REDUCED ,
VENDOR LIABLE TO
PAY

[email protected]

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