Valuation of item cost in Sales [Return and Credit Memo]

Hi,
Is there any way to get item cost affected in Sales [ Return and Credit Memo(with out copy from)] documents when item qty is Nill in respective warehouse, valuation method is FIFO

Hi,
Item cost is only linking to purchase or production. There is no link between sales and item cost.
Thanks,
Gordon

Similar Messages

Question about Sales Return and Credit memo

Good Day All B1 experts,
I am a SAP B1 newbie and am taking charge in implementing B1 at my office. I am doing a test today on sales return and credit memo. After I posted both documents, I went to view transaction journals and inventory posting status report to check my work. I saw the journal Debit - Sales Return / Credit - customer A/R account, and items are returned to the inventory. However, I do not see any adjustment journals for debiting Inventory and crediting COGS. Is there something else I have missed in regards to G/L account setup?
Thanks in advance for your time in answering my question.
Sunny

Sunny,
If you process a Item type Credit Memo (NOT SERVICE) directly without copying it from Sales Returns, there will be 4 entries in the posted JE.
Credit Customer
Debit   Sales Revenue (or returns depends on what you have mapped)
Credit COGS
Debit   Inventory
If you do a Return the JE would look like
Credit COGS
Debit   Inventory
Please check if you have selected a NON-dropship warehouse.
Suda

Sales Return and credit memo

Dear All
Little confused, kindly tell me correct method.
Sales return:
1. Sales order>Delivery> Billing> Return Order>Return Delivery-Credit Return
Credit memo
1. Sales order>Delivery>Billing>Credit memo request>credit memo
confusion is that when goods are recieved back due to customer rejection, we issue credit memo, which above step should be followed
Please kindly guide me.
Regards
Sandeep Bhowmick

Dear Sandeep,
> If the step no 1 is correct then in which scenario we will be using credit memo request and credit memo
See i will explain you with all scenario :
1. Scenario 1--> When we are selling some material to the customer and that material is scraped or completely lost in transit or any situation where you can not take it back....... So in this case there is no need of creating Return delivery......... Your Process 2 will go here.
2. Scenario 2: --. You sent some material to customer but due to some quality or defect purpose customer wants to return to you, then you have to create return delivery which will insure that you are taking that material back into your stock for quality checking.
I guess it will help...
Thanks,
Raja

Goods Return and Credit Memo

Hi Experts,
I've stuck with one problem on implementation project. The scenario is as below.
Cut-off data is 30th Apr 2009
Go live date declared is 30th April 2009, but the client has one specific requirement regarding the Return goods from customer.
The industry is a publication industry. Their customers are all around the world.
When they sale some material the goods may return after 3 years from the sale date and they give the cash back according to the invoice amount at the invoice date.
1) We shall upload all the balances as on 30th April 2009.
2) If any customer returns the goods which we had sold in year 2006.
3) How to book return order, delivery and Credit Memo.
4) What will be the effect on Inventory stock and price and according to Balance sheet.
5) We don't have back dated data (in Year 2006) in SAP system.
6) Client don't want to refer legacy system for the exchange rate and rate at the invoice time.
Please guide me how to map this scenario.
Regards
Amol

Hi,
1. If you are using ERS, then running MRRL transaction will automatically generate credit memo for your return delivery with movement type 122.
2. MIR5 is the one you should look into.
3. Take a look into ME80FN report. Yet, this report does not indicate specifically for movement type 122. If it is required that this movement type shall be chosen as part of selection parameters, then you should develop your own report.
4. There is not any particular difference if you are using movement type 161. The only difference is that in case of using 161, you will have to raise a new return PO and make necessary GR and IR posting. However, the disadvantage is that you will lose the track of your original PO (and PO history).
Cheers,
HT

Returns and Credit Memos

We take returns after Deliveries and Invoices are closed.
We request that Returns be allowed from closed Deliveries and Credit Memos be allowed from closed Invoices.
These returns impact commissions, taxes, inventory. To ask users to copy the information is to invite errors.
Are there any setting that allow for either Returns or A/R Credit Memos "copied from" closed documents?
Thanks,
Rob

hi,
You can create stand alone return / AR Credit memo.
You can't change standard functionality.
Jeyakanthan

Hi, how order related billing returns and credit memo's handled

hi,
sap gurus,
i am able to configure the order related billing business process and
plz requesting to explain the how to handle returns process for the same and
how i can raise credit memo for the same process.
regards,
balaji.t
09990019711.

Step 1: Sales Document Type
IMG > Sales and Distribution > Sales > Sales Documents >
Sales Document Header:
1. Sales Document Type:The sales document types represent the different business transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order type, always copy as with reference to similar sales order. If possible use standard sales order.
2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.
3. Assign Sales Area To Sales Document Types:
A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these, else Sales Order creation will give error.
B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required Sales Area. This will minimize selection of Sales Order Type as per sales area.
Sales Document Item:
1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as from standard & maintain New. (Item Category TAD is used for order related billing & in Material Master Item Category group is LEIS)
2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category
Schedule Line:
1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new, copy as from standard & maintain New.
2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item Category + MRP Type / No MRP Type.
Step 2:
IMG > Sales and Distribution > Billing >
1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new, copy as from standard & maintain New.
2. Define Number Range For Billing Documents: Ensure to maintain number range.
3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to Billing, Deliver to Billing, etc.
Note: Ensure that Copy Control settings are done
Sales Order to Billing (OR --> F1): VTFA
Billing to Sales Order (F2 --> RE): VTAF
The configuration differs from scenario to scenario & requirement of the client.
Regards,
Rajesh Banka
Reward point if useful.

Reg:F-28 Transaction Layout - Return and Credit Memo Scenario

Hi All,
In the F-28 Transaction am choosing Settings->Line Layout->Reference Credit For Returns Radio Button and have selected ok.
there i have included the fields as follows,
1.Sales Document
2.Document Number
3.Payment Reference
for normal sales order->Delivery->Invoice all the three columns showing Invoice Number Which is Correct.
if it is a return order or credit memo its showing return invoice in Sales Document and Document Number which is correct but its showing blank in Payment Reference Column actually i need Sales Invoice Number in that column, then only i can show for this return invoice this is referring to the sales invoice.
i have tried all possible combination's in the line layout and the fields for setting but nothing workout,could anybody clarify how can i overcome this scenario?

Hi,
For your first scenario,
for a retun po of IC NB type, after creating the PO you need to deliver the same at VL10G. For the delivery system will allow to create the PGR . Prior to these steps you need to return the goods using 161 at MIGO.Please check this 161 stock posted to stock in transit.After PGR system will clear the stock in transit.
Now after claring the stock from transit try cancelling the MIGO 161 document.
For the second query,
Please review your question' When we make return STO from store to DC, ths stocks are issued at DC MAP (condition type P101)
Assume we issue 9 quantity from Store then
Store stock is 9 ea, stock value is (1000-(25*9)) = 775, MAP is 775/1 = 775
This transaction is causing major flactuation in store MAP (100 changed to 775),
Please review the third line.
Regards,

Item Cost Not Getting During AR Credit Memo......

Hello Experts..............
          How can I get the Item Cost during after Ar Credit Memo. i'm unable to get it. Pleasev help me. I'm in urgency......
Thanks & Regards,

Dear Sir.......
            Sorry Thanga Raj Sir its not like that.
                          My Situation is something different. My scenario is as under:-
1) I am purchasing old gold(Item Old gold) of 100 gms from A(My customer) @ 1450/-.
We want the purchase a/c debited with 145000 and credited to customer with 145000/-
At the same time quantity of OLD Gold item to be increated with 100 gms quantity and value 145000 with cost of 1450/-
2) But we found that the journal entry of debiting purchase and credititng party come ok, but the item quantity increased with out updating the item cost
3) Once i get the item cost update, then i need to process the old gold and make refined gold as special production.
Hope now the concept is more clear & Request to help.
Thanks in advance.
Rahul

Different tax codes for a Sales order and Credit memo

Dear All,
We have created a sales order and in the invoice some X Tax code is determined in the Account document.
But when we created a Credit memo request with reference to the same Sales order, we are getting different tax code in the Accounting document of Credit Memo.
Kindly clarify how is it possible.
Regards,
Mullairaja

HI
Credit memo request with reference to the same Sales order
Because Suppose
Case 1 : you created Sale order 100 PC & Delivery 50 PC, Invoice raised 50 PC
In that above case if you take Sale order reference system will take 100 PC , but logically you need to raise Credit memo for 50 PC
Like that we can create Some cases , so try to create credit memo request based on Invoice not for based on Sale order number
Coming to you Query , try to check the Ship to party for that line item and also check the master data's once
I hope you understand
Regards,
Prasanna

Sales Return and Incoming Payments

Hi, I have worked with SAP Business One for a long time, but as an end user. Now I am employed as SAP Support for my new employer. I have a couple of questions:
1. My past experience with SAP is that a Return is a function created through a credit memo. My new company has a Return AND Credit memo in AR. I understand why this is needed, but when a return is used instead of a credit memo, the invoice is not linked to the return, nor is closed by the return. Is this because of the way the system was initially set up through SDK? Can this be corrected/reconstructed to do Sales Order -> Delivery -> Invoice -> Return -> Credit Memo. And have all the reconciliations done internally by SAP?
2. SAP was working on an issue but then stumbled upon another issue that they wanted me to look into from our database.
Here is a copy of their response:
In the course of our investigation for message 1065121 2010, for the database of (Customer 1127763), we noted that this is also affected by the scenario described in Note 1026115 - Invoice does not appear on Incoming/Outgoing Payment. I have attached the said Note for your reference. We have created this message on your behalf to pro-actively create a fix for the issue.
What I found out: My past experience with Incoming payments was that in the incoming payment screen, you could easily reconcile/click on the credit memo and the invoice and add it just fine. But in my new company, we are not allowed to add an incoming payment without entering a payment in the 'money bag', which is impossible because it's a credit memo against an invoice. We have to do an internal reconciliation, therefore the invoices do not show up in the incoming payments table. I know there is not a validation created to validate an incoming payment because I did not create a validated function to do so. How is this possible?
Your response is kindly appreciated.

Hi Marianne,
I think this is more a Business Process issue than an SAP issue.
If you have delivered goods, but not invoiced them, the correct document is a return. If you have delivered and also onvoiced, the correct document is a credit memo, not a return.
The return is drawn from the delivery, which creates the required links, and the credit from the invoice, also creating the links.
Creating a return where the goods have been invoiced is a redundant step and will break the links, as you point out, and requires additional reconciliations.
The credit memo based on an invoice will create all the accounting and stock entries you need. Perhaps some testing & training will convince them to change their processes?
PS if you do use internal reconcilation to close an invoice, you can find the applied transactions by using right click on the invoice

Return order and credit memo request

Hi SD guru,
If goods returned by the customer then what is the appropriate sales order type i should use means whether i have to create the credit memo request or return sales.
Please elaborate both scenarios where exactly i can use sales order type return and credit memo request.
Thanks
saj

hi sajid
when ur creating the Return order use the doc type RE in standard
followed by return delivery LR adn billing ths nothing but the creditmemo.
if your supposed to just adjust the values . then use the G2 credit memo request , with reference to the billing doc for which ur intending to issue the credit memo,and credit memo by billing the same .
hope this answers your question
reward if helped
regards
giri

Cost of sales act. and Funds Management_example on KB11N

Dear expert,
I want to hear your opinion about this:
1. On ECC 6, i work with func_area on CO (cost of sales activate) and Not activate the func_area on Funds Management.
2. Based on point 1, how is your controlling transaction work to assigned value? Reposting that assigned budget, is it working as real integration? The controlling transaction update to FM not conflict with func_area from cost centre master data?
I face the condition such as KB11N, func_area derived from cost centre master data and posting as combination fctr/commitment item/func_area on table BPJA. The budgeting under combination fctr/commitment item. That is the reason why the posting KB11N not update correctly on tcode FR05. The report and FR05 will be differrent.
On my experience based 4.7. No issue about func_area between CO and FM on controlling transaction. It works as expected.
I'm awful about this, in fact the going live will be tommorow. I will try another user exit, however i need some suggestion.
Best regards,
Dewi

Hello Eli,
Opposite things hapen to us.
The company already use func_area in Controlling. Funds Management then activated without func_area. For controlling transaction update on FM, func_area derive the same as controlling transaction.
In order update in FM correctly, func_area should be blank. It is helped by derivation rule to make func_area blank. Solving in FM, create new problem on Controlling.
The notes contain how to avoid blank. I need how when co transaction posting, func_area exist but no update on FM.
Have suggestion?
Dewi

Cost in Sales Order and Billing not match

Dear all,
I am facing a problem that the cost in Sales Order and Billing (order-related billing) not match.
The error seems related to sales order is getting moving price (MBEW-VERPR) as cost but billing is calculated by issued amount / qty.
Here's the detail (refer to the screen captures).
Sales qty = 1330 PC.
Local currency = HKD, sales doc currency = RMB, exchange rate = 1.26215.
Condition type ZCSR, condition category = G (Internal price).
When creating sales order ,
Cost is take from MBEW-VERPR => 1.86 HKD
Cost converted to doc currency => 1.473 RMB => 1.47 RMB
Total amount = 1,330 x 1.47 = 1,955.10 RMB
When creating billing from the delivery note,
Cost seems taking from total value divided by total stock in the article doc.
Cost = 2,477.82 / 1,330 = 1.863022556390 HKD => 1.476 RMB => 1.48 RMB.
Total amount = 1330 x [(2,477.82 / 1,330) / 1.26215] = 1,963.17 RMB
My goal is to align the same cost and amount in sales order and billing.
Please help.
Thank you very much.

Dear joan,
Thank you very much for your advise.
I implemented example 1 as in note 24832, trying to disable price re-determination in billing.
However it doesn't work.
Added code in example 1:
Copy control Delivery type LF to invoice F2, pricing type changed to X:
Still ZCSR re-determined but not copying from sales order (1.47 RMB):

Cost of sales, SD and COPA

Hi everybody
I'm using cost based COPA, and I would like generate the cost of sales posting to COPA from the material document of post goods issue. Does anyone know how to do this?
(I know that the usual way is to use price condition VPRS, but that generates some consistency problems between COPA and FI).
Thanks in advance
JPT

Thank you for your input Ram.
The thing is, I've configured OKB9 so that the COGS account would be filled in with the segment. The problem is that, even tough the segment is filled in the material document, there's no COPA document created. If I create a similar document directly in FI, it creates a COPA document.
I'm also thinking about an alternative solution:
- When posting goods issue, I would post to a "unbilled goods issue" account;
- In the invoice, I would create a new pricing condition that would take the VPRS value would post to the cost of sales account and would clear the "unbilled goods issue" account.
For this second solution I would need additional customizing, exits and pricing routines, but I think it would work. The first solution would be far more simple (basically I would have the same consistency as in account-based COPA, and the additional functionality of cost-based accounting).
If someone has any previous experiences or inputs on these ideas, they would be largely appreciated.
Thanks!
JPT

Use of cost relevant Item categories L2N and G2N for debit and credit memo

Dear Forum memebers,
For credit and debit memo one of the customised client repot is showing cost value which is not expected for credit and debit memo in the invoice register.
This is due to use of L2N and G2N which are cost relevant item categories.
Why should debit and credit memo item category should be cost relevant.??
Best Regards,
Kanwal

Well if your company do not want to adjust the cost of goods sold when any credit / debit is raised, then yes you can go ahead.
Thanks
Sai
Edited by: Sai on Nov 18, 2009 7:47 PM

Valuation of item cost in Sales [Return and Credit Memo]

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