Its negative amount identified by Customer and sent to Supplier. Ex: Purchase Returns.
Its negative amount identified by Supplier and sent to the Customer. Ex: TDS Payables
In Payable we are receiving the material from supplier. so we have to pay the amount to the supplier. in case supplier has send the goods more than what we order at the point of we have to return the goods reduce the accounting balance.We send a memo to the supplier is called as debit memo or supplier send a memo is called as credit memo. Both of the reducing our liability.
Ex: In Payables Debit Memo and Credit Memo functionality is same It decreases the supplier balance (i.e. decreases the liability)
Eg Supplier has send you invoice X with an amount of $100 but Later we found there is mismatch in quantity (more quantity billed)so we will inform to customer. Then customer has sent you the credit memo but if customer says send me the debit memo then you will generate debit memo from your end. Both are same as functionality.
Its negative amount identified by Supplier and sent to the Customer. Ex: TDS Payables
In Payable we are receiving the material from supplier. so we have to pay the amount to the supplier. in case supplier has send the goods more than what we order at the point of we have to return the goods reduce the accounting balance.We send a memo to the supplier is called as debit memo or supplier send a memo is called as credit memo. Both of the reducing our liability.
Ex: In Payables Debit Memo and Credit Memo functionality is same It decreases the supplier balance (i.e. decreases the liability)
Eg Supplier has send you invoice X with an amount of $100 but Later we found there is mismatch in quantity (more quantity billed)so we will inform to customer. Then customer has sent you the credit memo but if customer says send me the debit memo then you will generate debit memo from your end. Both are same as functionality.
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