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.
