Debit Memo Processing
It would seem that the process of issuing debit memos and granting
credits to reconcile those memos is straightforward. A distributor
issues a debit memo to a manufacturer to seek a credit. The
manufacturer reviews the debit memo and grants a credit on an
outstanding invoice. All is good.
A PTDA-commissioned task force discovered that, in practice, the
process is much more complex. Distributors may or may not issue
debit memos, instead opting to take a credit when making payment on an
invoice. Manufacturers may be slow to process the debit memo,
leaving the distributor with an unreconciled credit. The findings
of the task force are compiled in a white paper that outlines the issues
and offers suggestions for improving the process.
Download "A Discussion on Processing Debit
Memos"
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