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What is the difference between the credit memo and Debit memo?
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Answer Posted / shridevi.hiremath
Credit memo: A sales document created on the basis of a
customer complaint. This reduces receivables in Financial
Accounting.
Debit memo: A sales document created on the basis of a
customer complaint. This increases receivables in Financial
Accounting.
You may need to create credit memos for various reasons (for
example, because of defective goods or because you have
overcharged a customer). Similarly, you may need to create a
debit memo, if, for example, you have not charged the
customer enough.
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