Debit and Credit are balancing entries which plays vital roles in document posting.  In SAP we have various posting keys to handle these Debit and credits.

Suppose if we make customer invoice 

Dr Customer
Cr Sales

Suppose if we get payment from customer 

Dr Bank 
Cr Customer

Suppose if we make Goods receipt

Dr Stock
Cr GR/IR A/c

Suppose if we make Invoice Receipt

Dr GR/IR
Cr Vendor

Suppose if we make payments as salaries to employees

Dr Salaries
Cr Bank/Cash
 

What is meant by Debit and Credit Note?

Debit Note:
As the name suggests is an advice or note used to Debit a Vendor/ Customer.
Eg. After you have received the goods there are discrepancies in them you want to reduce the cost in such a case you raise a Debit note on the Vendor, intimating the Vendor so.
 
Credit Note:
It is an intimation to the Creditor/ Vendor for crediting his account maintained in our books of accounts. 
Eg. After goods are being despatched if you want to declare any discount you can do so by giving an intimation through a Credit Note.

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