Accounts Payable
- Debit and Credit Memos are having the same meaning.
- both are to reduce the balance of supplier.
- Debit memo is raised by us
- Credit Memo will be issued by the supplier.
Accounts Receivable
- Debit memo is like supplimentory Invoice to increase the balance of Customer
- Credit Memo is to reduce the balance of customer
- For instance, if the customer was not charged with freight charges and we need to add them to his liability, as we cant prepare one more invoice for the freight charges. we prepare a debit memo.
- Credit memo is issued when the customer is over invoiced, that he's charged more than what he should have been charg
