Debit memo and Credit memo in oracle payables

Debit memo and Credit memo in oracle payables

In this post , We will be discuss about the Debit and Credit memo in oracle payables. Debit and the credit memo are the Invoice types in Oracle Payables invoices. We do enter these Invoices in Oracle payables , when we want to reduce the final liability to our supplier. Debit memo and the credit memo both have the similar working in Oracle payables. Here below I will try to explain more about Debit memo and Credit memo in oracle payables.

 

 

Functioning of Debit memo and Credit memo in oracle payables

In Payables (AP) , Supplier sends the Credit memo , if they found any kind of discrepancies in the Invoice amount and want to reduce the final Bill amount. We do create the Credit memo in Oracle Payables , to reduce the final bill amount which we have to pay to the supplier. Debit memo , We do create in Payables  , if we want to reduce the bill amount for the supplier due to damage items received from supplier or defaulted items or wrong services. But both working at the end to reduce the final AP bill amount in oracle apps.

 

For Example , In any case, if we want to reduce the final pay amount to our supplier against his invoice , We do generate either Debit memo or Credit memo in oracle payables. While creating payment for that supplier , We do select both the Standard Invoice and that credit memo and reduce the final pay amount and then paid the final bill amount to the supplier in oracle payables.

 

 

Debit memo and Credit memo in oracle payables