Subsequent Debits/Credits

updated Dec 23, 2008 1:42 pm | 5,815 views

Introduction
Sometimes it is quite possible in the normal course of business that vendor may over/under invoiced the
business for a delivery. There may be various reasons for this. If this is the case and the vendor invoice
has already been posted by the business into the system, then there is a strong need for correction of this
invoiced amount.
In standard SAP, this correction is done by means of subsequent Debits/Credits. Here one should not
confuse himself with the term Credit Memo. Credit Memo is totally different from Subsequent
Debits/Credits

Subsequent Debits
If a transaction has already been invoiced and additional costs are invoiced later, a subsequent debit is
necessary. In this case, you can debit the material with the additional costs.
Subsequent Credits

If a transaction has already been invoiced and costs already posted are reduced at a later date, a
subsequent credit is necessary. In this case, you can credit the material with the reduced costs.

While posting an invoice or a credit memo as a subsequent debit/credit, the following points needs
consideration:
It is not possible to post a subsequent debit/credit before an invoice. Quantity needs to be specified for
which the costs are to be posted. Subsequent debit/credit leads to only value updates not quantity
updates. Purchase order history is updated with every subsequent debit/credit.

Valuation & Stock Account Updates
When a material is valuated at Moving Average Price, based on the quantity specified, while entering a
subsequent debit/credit, the system checks for availability of quantity in the stock, if sufficient stock is
available then subsequent debit/credit is posted to stock account and if sufficient coverage does not exist
for this quantity, only the portion for the available stock is posted to the stock account. The rest is posted
to a price difference account. This way, the posting does cause a change in value in the material master
record to the tune of amount posted to stock account.

When a material is valuated at a standard price, the subsequent debit/credit is posted to a price
difference account. This way, the posting does not cause a change in value in the material master record.