Why are credit memos created with a payment block (Message M8075)?

[former_member6016]

Hello guys. Someone can tell me why are credit memos created with a payment block (Message M8075)?

I know that invoces are created that but why credit memos too?

Regards;

[asish_behera]

Hi Leilisson

Credit memo in MIRO transaction has the exact opposite functionality of invoice.

In other words when invoice is posted vendor is supposed get money from you. (vendor account credited)

but when credit note is posted vendor is supposed to give money to you. (vendor account debited).

Practical scenario:-

you ordered 5 goods. after you receive goods you did GR and posted invoice. Now after some days you found 2 of the items are faulty so you want to return them to vendor.

so you do reversal of GR 102 MVT or return 122 MVT. after that you post a credit memo for 2 qty.

Effect of credit memo:-

1. Vendor account will be debited for 2 qty value.

2. in PO history for invoice 2 qty and value of 2 qty will be reduced.

NB:- try searching the utility of other 2 option, subsequent debit and credit.

[Lakshmipathi]

Before answering to the question "Why" - can you please let me know in what circumstances, we issue credit notes to Vendors? This will probably, answer your question.