Credit Memo Processing

Hello!
I will start out by apologizing up front if I waste anyone's time with this inquiry!
This is more of a how should we be doing it out of the box issue.
First a little background - we are a gold company that has been using Oracle applications since 1991.Currently we use Payables, Inventory, Purchasing, GL, HR/Payroll, EAM, FA, iExpense, iProcurement and probably a few others I have forgotten.
Currently when we pay an invoice in accounts payables and then an item is returned to a vendor from our warehouse, Ap gets a credit invoice back from that vendor providing credit info. They go ahead and adjust the invoice on the Ap side, then send an email to purchasing and to the receivers in our warehouse handling the inventory. The receivers in the warehouse un-receive the item and the buyers go in and adjust their line items on that PO.
This is very cumbersome and our warehouse supervisors' feeling is that this process puts unnecessary burden on our receivers.
I am curious how others handle credit memos - I also have logged an SR with Oracle support to see if I can get a "this is how its suppose to work" synopsis to see if we are even processing credit memos correctly and if so what modules you need to make it all work - even if its to point me to good white paper or document on it.
I also would like to know if anyone has automated this. We are currently working in 11.5.10 but are upgrading to 12 within 2 years so I am curious to find out if r12 resolves anything for us.
Any info is greatly appreciated
Regards
Danny L Sullivan
Senior Systems Analyst
Barrick Gold of North America
Nevada Shared Business Center
775-748-1105

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Similar Messages

  • Credit Memo process in 3rd party order

    Hello All,
    Once 3rd party invoice is completed process as follows: (standard process)
    sale order --> Purchase Requisition --> Purchase Order --> Goods Receipt --> Invoice Verification --> Customer Invoice.
    When you post the customer invoice to accounting, in general system will update
    1.Net Value    2. COGS (Cost of goods sold)   3. Sales Qty.
    Now the scenario is when the vendor cancel his original invoice and reissue the invoice (due to change in price / change in stock item and so on..),
    We have to cancel the customer invoice and issue credit memo invoice (without any reference) for the customer.
    But the problem here is.. when we post the credit invoice to accounting, COGS will not be updated (currently they are adjusting COGS value manually).
    How can we map this scenario ? while creating credit memo invoice we should consider some reference so that COGS should be updated.

    Hello Suresh,
    THERE ARE TWO SCENARIOS HERE.
    Scenario is when the vendor cancel his original invoice and reissue the invoice (due to change in price / change in stock item and so on..),We have to cancel the customer invoice and issue credit memo invoice (without any reference) for the customer.
    > IF THE VENDOR GRANTS YOU A CREDIT MEMO ON THE QUANTITY OR VALUE BASIS, YOU CAN DIRECTLY PASS ON THIS TO CUSTOMER BY RAISING CREDIT MEMO (THIRD PARTY CREDIT MEMO IS G2S), THIS WORKS WITH ITEM CATEGORY 'TASG' (THIRD PARTY CREDIT MEMO ITEM). THE SALES RELEVANT INDICATOR ' F' IS SET IN CUSTOMISING FOR SALES FOR THIS ITEM CATEGORY. THIS MEANS THAT THE COST IS NOT CREATED.
    --->IF THE VENDOR CALCULATES ADDITIONAL COSTS FOR YOU ONCE THE THIRD PARTY BUSINESS TRANSACTIONS HAVE ALREADY BEEN BILLED. THE COSTS FROM THE INVOICE RECEIPT ARE THEN CORRECTED IN THE CUSTOMER BILLING DOCUMENT WHICH HAVE ALREADY BEEN CREATED. SUBSEQUENT DEBITS FROM THE INVOICE RECEIPTS ARE COPIED TO PROFITABILITY ANALYSIS AS A DIFFERENCE AMOUNT. THIS MEANS THAT THE COST IS UPDATED HERE ALSO. IN ACCRUED PROFITABILITY ANALYSIS, THE COSTS ARE NOT COPIED FROM THE INVOICE RECEIPT, BUT FROM THE CUSTOMER BILLING DOCUMENT.
    EXAMPLE:In the context of a third-party business transaction, you create a sales order for over 100 pieces.
    A purchase requisition and a purchase order are generated. Ten pieces are delivered to the customer, and a billing document is then sent to the customer when the 10 pieces are delivered. The vendor sets a subsequent debit of 100 USD for shipping costs in the invoice. The cost is nowupdated in the billing document created, and in the profitability analysis (in this case, it is raised
    by 100 USD).

  • Basic Idoc type  used for Credit memo  processing

    Hi ,
    I am  working  to  automate the processing of Credit Memos ,Subsequent  debits and credits  .Can any body suggest me for the Idoc type used for posting of credit memos, which  will do the same function of transaction 'MIRO'  .Please  help  me for the above  .
    Please send the reply  on [email protected]
    Regards ,
    Shilpa

    Hi,
    You can use invoic message type with invoic01/invoic02 type of IDoc whichever is suitable for your requirement.
    Thanks.
    Mark points if helpful.

  • During credit memo processing system is picking inventory account

    Hi Experts,
         When we do credit memo, wrong posting are coming i.e. vendor a/c is debit and inventory account is credited why inventory account is coming instead of gr/ir account. Stock is available. Please find the attachment of credit memo entries
    Regards
    Badri

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    Find here a guidance How to close a discussion and why
    Please review your other  >70 open discussions and close them  if you are not anymore interested on a solution, got the solution or found one yourself

  • Credit Memo Process Issue

    Hi,
    1) SAP allows credit memo to be created with reference to credit memo request and with reference to an invoice. In what what scenarios we should give option of creating credit memo with reference to invoice and in what scenario we should give option of creating credit memo with reference to credit memo request?
    2)  Whlie creating a credit memo request with reference to an invoice is there a way to restrict that the value or quantity of credit memo request should not exceed the value and quanity of referenced invoice
    3) Whlie creating a credit memo directly with reference to an invoice is there a way to restrict that the value or quantity of credit memo should not exceed the value and quanity of referenced invoice.
    Girish

    Hi,
    1) SAP allows credit memo to be created with reference to credit memo request and with reference to an invoice. In what what scenarios we should give option of creating credit memo with reference to invoice and in what scenario we should give option of creating credit memo with reference to credit memo request?
    >>> You raised invoice to customer say value is $ 100, Now due to some resons (Returns,price change etc) you want to give credit (u want to charge $ 90 insted of $100), Then you can create credit memo with refrance to invoice,
    Now again u want to change this credit memo, then credit memo to credit memo refrance can be used
    2) Whlie creating a credit memo request with reference to an invoice is there a way to restrict that the value or quantity of credit memo request should not exceed the value and quanity of referenced invoice
    3) Whlie creating a credit memo directly with reference to an invoice is there a way to restrict that the value or quantity of credit memo should not exceed the value and quanity of referenced invoice.
    >>> As std is availbale it will give you warning masage only.
    Kapil

  • ERROR MESSAGE M8 534 during MR8M, Cancel CREDIT MEMO PROCESSING

    Dear Experts,
    Kindly explain me what is the actual meaning for the message "Balance not Zero: 4,487.00 -  debits : 54,487.00  Credits : 50,000.00"
    The above message has been received during cancel Credit memo document through MR8M.
    Kindly help me out to proceed further..Thanks in advance..
    Regards,
    Kumar

    Hello Kumar,
    This problem usually occurs due to differences in tax amount
    The source document was posted in a previous period.After this, the tax rate was changed (this is allowed in countries with tax jurisdiction  code).The reversal document should be posted in the current period.When canceling the source document, the tax is calculated on account of the entered posting date and differs from the original tax amount.           
    If the posting period of the source document is opened:      
    -   Post the reversal document with posting date of the source document.                                                                               
    If the posting period of the source document is closed:              
    -  Open this posting period and post the reversal document with the posting  date of the source document.  If you do no   longer   want to open the previous period, you can only post   a credit memo in this case.However, a different tax amount is calculated here if, as described above, the tax rates have been changed in the  meantime. 
    Hope this can help
    Regards,
    Mauro

  • Credit Memo Processing- FB75 and F-30 or F-26

    Hello Folks-
    I need some help.  When I execute FB75 against a sales tax code, I have no problem and it posts the document.  When I execute F-30 or F-26 and try to hit the same code using a 40 posting key, it is requiring a tax code and tax jurisdiction which I have but it is requiring "enter base amount or let the system calculate it".  When I try to manipulate it by entering the amount in the base amount field I get the following error message"Tax Code 01 may only contain one assignment."
    What am I doing wrong here?  Why can't I use the same tax code and jurisdiction in another transaction code?  In addition, is this the best t-code to use when handling credit memo's.  I had heard there is a t-code out there that requires the user to input an invoice number to clear against but I haven't found it.
    Any help would be appreciated.  I will award points!
    Thanks!

    Hi Michael,
    I am no finance expert, for a start and i dont want to repeat again and again the idea of creating transaction variants (i see in quite a few threads that the experts seem to have a penchant for this and personally it is my least preferred option
    Anyway, coming to the discussion - i would prefer having more granular transactions as Julius mentioned
    Go to SE38, enter the program name SAPMF05A (this is what is called when FB05 is used) then click on the where used list (CtrlShiftF3), de-select all options and select the option for transactions, you will get a list of transactions that use the program and it lists the granular transactions for FB05 (ex: FB60 for Incoming Invoices)
    I would like to think, that we can restrcit the access to different "Buttons" based on a few basic principles (it is only a idea, i didnt try it) The different radio buttons signify different activities Accounts payable & Accounts receivable, so it should be for customers and Vendors - make a restriction on the account types (F_BKPF_KOA) in the role that has FB05, you can also make restriction on what kind of documents are processsed based on the document types (F_BKPF_BLA) used in FB05 - that could be a option, Ideally the customer invoices would be a different document type than the vendor invoices, isnt it?
    There is no harm in giving it a try - so go ahead and try in the Development system. see how it goes..............
    Good luck and dont shoot me if it doesnt work (or) if you already tried all these options

  • Printing of credit Memo processed in FB75, is not set up in co code

    Hi,
    For my company code there was limited correspondence types has been assigned.
    No he wants to assign new variant/standard variant to the existing list.
    I am able to assign this in ob78. In FB12 if i am trying to see that, it is not showing the assigned one.
    Whether i have to do any changes in Variant or where to do not understanding.
    Could you please help me in this, as it is very urgent.
    Many thanks in advance,
    Cheers,
    Veena
    Message was edited by:
            veena chowdary

    Hi Krishna,
    Many Thanks,
    But In OB96 i have seen for  my co code some programmes already assigned.
    Once again i would like to explain this, In FB12, once co code has been given, I want to see list of corresponces which have been assigned to my particular co code only.  But For my client already two correspondences has been assigen.  Now he wants me to assign Creditmemo (FB75).  But in OB78 I had assigned co code to that correspondence type.  But to maintain request it is not showing  that new one.  Where we have to do this adjustment not clear.
    Hope this explanation will help you.  Other wise could you plese let me know.
    This is very urgent, from past one week I am trying .
    Lots of thanks in advance,
    Cheers,
    Veena

  • Credit memo billing document is not flowing in the order

    Dear all ,
    I have a problem,   i created a credit memo request based on the billing, i have a seperate order type for returns and i have done returns order and  returns delivery,  based on the actual  export sales i have done.   The process of everything is flowing in the actual  export sales order done , except the credit memo process . 
    I want to know wheather the credit memo process will be captured in the document flow of the order. or it wont be appearing in the document flow.. 
    My docuument flow   is giving all the process right from order to billing and the returns order till returns delivery but the process of credit memo is not showing , when i did the credit memo processing based on the export sales invoice.
    kindly guide me on this
    anitcipating reply from all
    thanks and regards
    kumaresh

    Hi kumaresh,
    Please note the following configuration for crating the Credit note with ref to Invoice :
    1.Use T code VTAF:
    Source Bill. Type ZF2
    Target SalesDocTyp ZCR
    DataT 053 Header bill
    DataT 103
    DataT 003
    021 Billing header
    Activate : Copy Itm No
    For Item : example from TAN to G2N .
    Every thing is SAP Std , activate Update Document Flow
    Pricing type - D and Copying requirements 303
    Please do the above settings and your peoblem will be solved
    Veera

  • Order related inter company credit memo - Order status 'Not Invoiced'

    Hi,
    We have recently created 'Order related inter company credit memo' process for return Stock Transport Orders(STO). For this, we used order related billing (billing relevance = C i.e. Relevant for ord.-related billing - status acc.to target qty) with standard item category 'G2N'. The issue is even after invoicing, sales order item status is 'Not Invoiced' and header status is 'Open', hence these orders are picked up multiple times during background invoice run and multiple invoices are being created.
    How do we control the 'Completion' status in order related inter company billing? VBUP-FKSAA is not changed even after billing document creation and remains as A i.e. Not yet processed. Do i need to check VBUP-FKIVP since this is inter company billing.
    I have also tried with TVAP-FKREL as 'B' i.e. Relevant for order-related billing - status according to order quantity but of no use.
    Please advise.
    Thanks in advance.
    Regards,
    Ganesh
    Edited by: Venkata Ganesh Perumalla on Nov 10, 2010 6:08 PM

    HI,
    Check too the Note 308989 - Consultant note for cross-company transactions
    It says:
    I.1.5 Returns request (IR) - returns delivery - customers credit memo -
    intercompany credit memo (IG) (RETURNS)
    The customer credit memo is created for the returns request and the
    intercompany credit memo is created for the returns delivery.
    Regards,
    Eduardo

  • SUS Invoice created in R/3 instead of Credit memo

    Experts !!
    I am able to create credit memo in SUS, the XML message InvoiceRequest_Out does get generated in SUS, but unfortunate to get the Invoice document generated in R/3 instead of Credit memo.
    I also see that the SUS XML has a tag <CancellationInvoiceIndicator>false</CancellationInvoiceIndicator> which I belive should be TRUE in the case of credit memo.
    Any help would be highly appreciated. It would be great if someone can sharewith me the detail setup steps to get the credit memo in SUS working. I would like to crosscheck my settings.
    Thanks,
    -Devi Swain

    Hello,
    We are implementing SUS. We are facing issues in Credit memo processing through SUS though Invoice gets posted properly.
    Could you please share the steps that you had done to get the credit memo process working?
    Thanks
    Raman.

  • Opiton to choose bank accounts at the time of Credit Memo Request

    Hi,
    We have maintained multiple banks for same customer in customer master. Our requirement is to have an option to choose a particular bank account at the time when a credit memo request is created. The customer wants different credit notes to go to different bank accounts. We do not want to do it at the time of payment as this becomes quite manual. Is there any way we can do this at the time of entry of Credit Memo request in VA01 ?
    Thanks,
    Praveen

    Dear Praveen,
    I don't think you can have this option in the standard functionality.
    Because account assignment will takes place based on these combination
    Chart of accountsCondition typeMaterial account assignment groupCustomer account assignment groupAccount key.
    So you can't assign different G/L with same combination, if you want different G/L accounts then you need to change either one the key combination.
    Other wise you can have different credit memo types based on the Bank accounts
    -->Generate the condition table with billing type as one of the key field.
    -->Maintain access sequence for that, assign to condition type.
    -->Now define and assign the new account determination procedure for the credit memo process.
    -->Finally you assign the Bank G/L account with bill type(I,e Credit memo type) is as one of the key combination.
    But make sure that you have maintained proper copy control settings for all these credot memo types from credit memo request or other reference document.
    You can try with some user extis with the help of ABAPer,
    The following user exits are available in report SAPLV60B for transfer to accounting
    USEREXIT_ACCOUNT_PREP_KOMKCV (Module pool SAPLV60A, program RV60AFZZ)
    In this user exit additional fields for account determination that are not provided in the standard system are copied into communication structure KOMKCV (header fields).
    EXIT_SAPLV60B_001: Change the header data in the structure acchd
    You can use this exit to influence the header information of the accounting document. For example, you can change the business transaction, "created on" date and time, the name of the person who created it or the transaction with which the document was created.
    EXIT_SAPLV60B_002: Change the customer line ACCIT
    You can use this exit to change the customer line in the accounting document. This exit is processed once the ACCIT structure is filled in with data from document header VBRK.
    I hope this will help you,
    Regards,
    Murali.

  • Amount posted different for Invoice and Credit memo

    Hi Experts,
    The user has reversed only one line item of an invoice entry (RE), which was processed back in 2009. The invoice entry was processed with two Gl Accounts( Transit Comm.match and Com.Inv.GIT d.d) with amount allocated as 576.35 (5399.2 and -4822.85)with an input tax of 22%.But in the reversal entry the amount allocated to these account are different(-5851.62 and 5275.27), thought the total match to -576.35. Interesting thing is this entry was posted in a foreign currency (EUR) wherein the Local Currency values which is in PLN is same for both invoice and reversal entries. Exchange rate for both the entries are  4.20430.
    Please let me know your thoughts..

    Hi Ravi,
    Here by reversal I meant the credit memo processed against invoice.

  • Implement the following scenario for credit memo

    Dear experts!
    Thank you for your attention!
    how to implement the following scenario for credit memo??????
    1.Credit memo requests are usually blocked for billing (that is, credit) upon creation until the
    employee responsible releases this block.
    2.Within our company, we want make the definition of the point at which the check is carried out and
    the employee responsible dependent upon the value of the credit memo request.
    3.If the value of the credit memo request is below a certain minimum limit, then it can be released
    automatically by the system.
    4.The workflow within the framework of credit memo processing now guarantees that the employee
    responsible is automatically determined and informed when a credit memo request is created,
    depending on the value involved.
    waiting for your help!!!!!
    Best regard!
    Tangdark

    Hi,
    Hope so you know all the setting regarding credit memo customizing.
    Otherwise use the standard one.
    Regarding authorization go to PFCG and create a new role.
    In that you can maintain the authorization regarding the minimum credit limit.
    Please check out this setting.
    And update me also if I was wrong.
    Regards
    Raj.

  • How will i configure credit memo & debit memo

    how will i configure credit memo & debit memo...

    Hi,
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    [Credit Memo Processing |help.sap.com/saphelp_crm40/helpdata/en/00/3853f5993679408a1e25fb84a43c32/content.htm ]
    [A/P Credit Memo |help.sap.com/saphelp_sbo2004a/helpdata/en/1b/ded618b0f6ac419a46900612a32daf/content.htm ]
    [F-27 - Enter Credit Memo|web.mit.edu/cao/www/AR/ar2/ar_F-27.htm]
    [Credit/Debit Memo Request |http://sapdude-sapsd.blogspot.com/2007/07/creditdebit-memo-request.html]
    [Debit Memo|help.sap.com/bp_blv1500/BL_US/HTML/Scenarios/V4D_Scen_EN_US.htm]
    Assign Points if helpful.
    Thanks and Regards,
    Naveen Dasari.

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