Accounting Entries for Debit Memo Adjustment Vouchers

Debit memo adjustment vouchers can automatically be created for discrepancies between the voucher and the purchase orders and receivers.

The following accounting entry examples are based upon these assumptions in addition to the assumptions made in the prior section:

  • The purchase order amount is 10,000 EUR.

  • The receiver amount is 8000 EUR.

  • The Matching Application Engine process (AP_MATCH) is run.

Note: The Matching process creates debit memos for merchandise amounts and tax amounts only. No miscellaneous charges, freight charges, or discounts are applied to the debit memo vouchers. The system calculates sales and use tax amounts and VAT amounts based on the tax codes specified on the voucher line.

Action: Voucher Entered and Matched, Debit Memo Created and Posted

The two accounting entries for the debit memo are accounts payable and expense distribution. The debit memo voucher will inherit the distribution line information.

GL Business Unit

Distribution Account Type

Foreign Amount

Foreign Currency

Monetary Amount

Currency Code

DEU01

Account Payable

2000

EUR

2000

EUR

DEU01

Expense Distribution

(2000)

EUR

(2000)

EUR