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rebate accruals

former_member208541
Participant
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Hello,

in a rebate scenario, when we raise an invoice, the rebate conditons are included in the invoice. so if the invoice value is Rs 100, the customer rebate for example is Rs 2 in the invoice.

so the accounting entry generated will be to debit the customer by Rs 100 and credit to customer accrual account by Rs 2/-

when we settle the rebates, the credit memo request is issued and then a credit memo. through credit memo the customer account is credit by Rs 2 and the customer accural account is reversed.

my question is, in case of manual accruals, why the system is issuing a credit memo request and then a credit memo. becasue by issueing a credit memo, we are giving a credit to customer account (not accrual account) whereas in actual we are just doing an accrual like we are doing accurals when we are raising the invoice

regards

sachin

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Answers (2)

Answers (2)

Former Member
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the process is as such, when you try for manual accruals (accrual adjustments) it is through Request document followed by billing document. This is for only adjusting the accruals and will not be sent to customer as credit memo.

When you try settling, then the credit memo comes into the process.

Former Member
0 Kudos

Hi,

Normally we are giving acruvals before the date that means we are giving credit memo request the period is over we will give credit memo.

Regards,

venkatawamy.y