:: Home Page            
 Advertise your Business Here     
Browse  |   Placement Papers  |   Company  |   Code Snippets  |   Certifications  |   Visa Questions
Post Question  |   Post Answer  |   My Panel  |   Search  |   Articles  |   Topics  |   ERRORS new
   Refer this Site  Refer This Site to Your Friends  Site Map  Bookmark this Site  Set it as your HomePage  Contact Us     Login  |  Sign Up                      
Categories >> Software >> ERP CRM >> Oracle Apps >> Oracle Apps Financial


 Oracle Apps Technical interview questions  Oracle Apps Technical Interview Questions (488)
 Oracle Apps Financial interview questions  Oracle Apps Financial Interview Questions (603)
 Oracle Apps Manufacturing interview questions  Oracle Apps Manufacturing Interview Questions (51)
 Oracle Apps HRMS interview questions  Oracle Apps HRMS Interview Questions (77)
 Oracle Apps CRM interview questions  Oracle Apps CRM Interview Questions (9)
 Oracle Apps SCM interview questions  Oracle Apps SCM Interview Questions (105)
 Oracle Install Base interview questions  Oracle Install Base Interview Questions (62)
 Oracle Service Contracts interview questions  Oracle Service Contracts Interview Questions (101)
 Oracle Apps AllOther interview questions  Oracle Apps AllOther Interview Questions (11)
What is Debit Memo & Credit Memo in Payables?
 Question Submitted By :: Oracle-Apps-Financial
I also faced this Question!!     Answer Posted By  
# 1
Debit Note:When a firm returns some goods to its
suppliers,it prepares a debit note and sends it along wih
goods returned.
Credit Note: Credit note nothing but Credit Memo. It is a
document used to adjust or rectify errors made in a sales
invoice, which has already been processed and sent to a
Is This Answer Correct ?    239 Yes 32 No
# 2
memo is a short note designating something to be
done,According to ORACLE PAYABLES,

CREDIT MEMO-issued by the supplier.suppose there are errors
in the invoice sent to the customer or there is aproblem
with the shipment then this memo will be issued to decrease
the amount specified int he original invoice sent to the,the supplier balance will reduce.

DEBIT MEMO-ISSUED BY THE CUSTOMER,if there is a defect in
the goods,then along with the goods customer will send a
debit memo to supplier,so here the supplier balance will

Thus in both cases the supplier balances will reduce.

let me give an example.if the invoice amount is 1000$,if
supplier raises 100$ credit memo,then it is understood that
due to some errors in invoice,he is sending a credit
memo ,actual invoice amount is 900$.so the supplier total
balances will come from 1000$ to 900$.

Now,let us take the example of debit memo,if there are any
defect with goods supplied,say,for 100$ worth,then customer
will send debit memo of 100$ to in this case
also the supplier balances come down from 1000$ to 900$.
Is This Answer Correct ?    197 Yes 11 No
Manoj Kumar
# 3
In AP both Debit, credit memos accept -ve amounts only. The
only differance is where it originates, weather at your end
or at supplier's end.

If you create and send it to the supplier it is called
Debit memo.
If you receive from the supplier and record it, it is
called Credit memo.
Is This Answer Correct ?    147 Yes 11 No
# 4
In both Debit memo and credit memo, supplier's balance is
reduced. Debit memo is issued by the Oraganisation to the
supplier whereas Credit memo is issued by the supplier.
Is This Answer Correct ?    111 Yes 32 No
# 5
Debit memo is a document which is prepared by the customer
to his suppliers to reduce in the amount due to over
casting or damage of the goods or services. It allows
negative balances only.

Credit memo is a document which is prepared by supplier and
sent it to customer to reduce his due due to overcasting in
the original invoice. It allows negative balances only.

The main difference between Debit Memo and Credit Memo is
the origin of the document. If it is prepared by customer
send it to supplier it is called as Debit memo and Supplier
will accept it after confirmation. Supplier will not
prepare Credit memo againt debit memo. And the document is
prepared by supplier it is called as credit memo and
customer will accept it but do not prepare debit memo
against supplier credit memo.
Is This Answer Correct ?    50 Yes 8 No
G Prasad
# 6
Debit Memo and Credit Memo functionality is same in Oracle
Payables i.e it reduces the vendor balances
but Debit memo issues by Company asking vendor to reduce
outstanding balance of the company where as credit memo
issued by Vendor or Supplier.
Is This Answer Correct ?    47 Yes 9 No
Prashanth Kumar
# 7
Debit Note: Debit note means, it is a note raised by the
when goods returned by the debtor i.e. by the customer who
bought goods from seller,
Is This Answer Correct ?    32 Yes 7 No
# 8
In Oracle payables, both debit memo and credit memo are one
and the same and are used to reduce the supplier's
liability for the goods returned to him. The former will be
prepared by us and the later will be prepared by the
supplier and sent to us.
Is This Answer Correct ?    29 Yes 12 No
# 9
Debit and credit memo both are negative in AP , both it
reduces the purchaserís liability and vendorís/suppliers
The reasons for raising debit memo by
. Over billing.(Good Returns )
. Duplicate billing.
. Wrong invoicing.
. Over tax.
. Over freight.

:Above case we can issue debit memo or we can take Credit
memo from Supplier ,

Supplier Debit Memo we will treate like standard invoice
Is This Answer Correct ?    17 Yes 3 No
Sanjeev Sharma
# 10
The question is, "Will a Debit Note reduce Inventory during
Posting". In JDE World application it will not because the
post program do not inteface with Inventory. The answer is -
a credit sales order will reduce inventory, create a
credit invoice in AR, the reimburement program will create
a Debit note in AP.
Is This Answer Correct ?    13 Yes 2 No
Roy Singh

Other Oracle Apps Financial Interview Questions
  Question Asked @ Answers
Difference between quick payment and manual payment? ICICI 2
What is Difference between Internal Sales order and Intercompany Sales order ? How they are Different in 11i and R12 Ibm 1
What are the various Implementation method for oracle apps GTL 4
What is price break and what are the different types of price breaks ? FIC 3
What is ment by prorate convention? Merrill-Lynch 4
what is a flexfield qualifier ? Oracle 16
What are the mandatory flexfiels used in FA?   2
Use of Pay on receipt auto invoice?   2
How is the GL Date derived by AutoInvoice process? Any set-ups?   1
can u make payment across two legal entity ? ex:- one primary ledger, two legal entity and one legal entity have "A" operating unit and another legal entity have "B" Operating unit .. i posted invoice in "A" OU, can i make payment through "B" OU ? if Yes what is mandatory setups ? Cap-Gemini 1
How do U do the Analysis of discounts lost and fixing the root cause Wipro 1
Hai, what is meant by accounting reporting in oracle financials.   1
For more Oracle Apps Financial Interview Questions Click Here 

Copyright Policy  |  Terms of Service  |  Articles  |  Site Map  |  RSS Site Map  |  Contact Us
Copyright © 2013  All Rights Reserved.   ::