Difference between Credit memo and subsequent debits/credits

Subsequent Debits/Credits are used in cases where the quantity is in the original invoice is to remain the
same. For eg.
PO 10 - $10
Gr 10 - $10
LIV 10 - $11 (Logistics Invoice Verification)
The vendor invoice is more than that in the Purchase Order. In order to correct, the Vendor may send in
another invoice for
the Increased amount or a credit memo for the increased amount.
If you approve of the price increase, post the subsequent invoice received as a Subsequent Debit/Credit
Invoice.
If it is a credit memo that has been received, then post the credit memo as Subsequent Debit/Credit.
This would retain the quantity but reduce the amount.
Subsequent Debit/Credit is for the case when the credit is not for the full amount eg. if the Vendor decided
to credit
only the $1 overcharged.
Credit memo is for the credit of the full amount and value

Credit Memo for eg. it can be used for vendor returns, Return delivery (via GRN) will be done and based on
the PO and return delivery quantity, the credit memo will be raised and where as Subsequent credit don't
need any reference, it can be any kind of adjustment to vendor payment directl

Credit memo is used when you need to get some amount from vendor i.e. in case of return delivery etc.
Subsequent credit is used for posting price change with retrospective effect i.e. suppose your PO price is
Rs 1,000 /- and po date is 10-04-2009. You have received total PO qty and posted MIRo in May-2009. If u
come to know in June-2009 that PO price should be Rs 950 /- effective from 10-04-2009 itself, then you will
use subsequent credit