Delivery vs Invoice in Sales A/R --- Return vs A/R Credit Memo

1. What is the difference & relation between Delivery in Sales-A/R vs Invoice in Sales-A/R?
They both similar. Does it mean we can make Delivery only and skip Invoice?
According to definition: 'The Delivery is a legally binding document indicating that the shipment of goods or the delivery of services has occurred. Without this document, goods can be delivered only if an invoice has already been created.
2. What is the difference & relation between Return vs A/R Credit Memo? Again, I found these 2 are very similar.

Hi Tom,
Let me put this Briefly:
1. The sales Cycle as per SBO starts from Quotation - SO - Delivery and then Invoice. Now as such you can directly create the A/R Invoice without reference to the delivery. There is a difference b/w the two. When you create the Delivery Document the system posts Stock Posting and in order to post the Value posting you will have to manadatorily create the A/R Invoice.
2. Now If you directly create the A/R Invoiec without refering to a delivery the system will post both Stock and Value postings. Now you cannot make any payments with reference to the Delivery document in order to make payments you will have to necessarily have an invoice .
3. Now invoice by itself can complete the whole sales cycle...i.e. when you create the Invoice as mentioned above can do both stock and value posting.
4. Similarly the return documnet is created with reference to a Delivery. It is the correction doc for a Delivery. When you are creating a return with reference to a delivery the stock postings are done but on order to do value postings you will have to create a A/R credit memo wRT the Retuns. However again when you are creating a stand alone A/R Credit memo both stock and value are posted .
5. Also return doc can be created wrt the Delivery only but the A/R Cr memeo can be created wrt
   a. A.R Invoice
   b. Delivery
   c. A/R DPM Invoice.
Hope I have clarified your doubts.
Reward points if helpful.
Nagesh

Similar Messages

Billing Status C in Sales Ord not getting reversed on creating Credit Memo?

Dear SD Guru's
I have a small query, i have such a scenario.
I create sales order for a saleable service material from (01.02.08 to 29.02.08) through order type (ZOOH)
Raise invoice in advance for 30 days on 01.02.08 through billing type (ZOIN) say 100 rupees.
Now on 15th client says he doesnt want the service and i issue a credit memo request (ZOCR) against my invoice type (ZOIN) and change the contract dates from 16.02.08 to 29.02.08 for value 50 rupees.
Now i create credit memo (ZOCM) for 16.02.08 to 29.02.08.
Now once i do that i want the billing status to be reversed in my original document (ZOOH) for period 16.02.08 to 29.02.08
How can we achieve this?
Please its urgent. Points will be suitably rewarded
Regards
Ravi

Hi Krishna,
Your inputs have been valuable, but could you please tell me why doesnt it automatically edit the billing plan row against which i have raised my credit memo. I have to go and do it manually in my original sales document and edit the period.
Cant it happen automatically?
Kind Regards
Ravi

Credit memo -- with ref to invoice

Hello All,
This is my scenario:
1 Invoice with value 100.
2 Credit memo whith value 100 with ref. to invoice.
3 The system let me create more credit memos for the same invoice exceeding de invoice original value. (it just informes me that there are other credit memos) How can I prevent this ?
I checked copy control and Pos./neg. quantity--i put as "+" and in Item Category TAN- Completion Rule mark as "A".
Regards,
Ashu

Hi Ashutosh singh
Credit Memo and the invoice are different and the two r used in different scenarioes
Credit Memo is the Billing document raised for compensating the customer and the the document is raised with reference to the the Credit Memo request
The scenarios is that the customer places an order with the company and the company delivers the fgoods to the customer in which some of thm are dmaged and the customer then claims for the compensation , so the company asks the customer to return the goods to the company and simultaneously they will pay the compensation
process flow is as
Created the standard order OR
then do the deliver LF
then billing document F2
and then raise the credit memo request for the goods G2
thenBilling which is the credit memo
G2
This is the special process where the goods are received and the customer does not want the replacement of the dmaged goods and instead he wants the amout to be credited
so we have to raise the credit meemo request with reference to the standard illing document and then the credit memo request and then billing document G@
but in the standsrd invoice we havae to creatae the created the standsrd and then the delivery and then the invoice
Invoice
order (VA01)>Delivery(VL01N)>Change Delivery(VL02N)&PGI>INVOICE
EX:
Order type:OR
credit memo:
for the return material or discount is missing for the material,we create credit memo request.credit memo has sent to customer
order (VA01)>CREDIT MEMO(VF01).
NO DELIVERY PROCESS.WITH REF. to BILLING DOCUMENT,we create credit memo request.
EX:
Order type:G2.
The below link will help u
http://able.harvard.edu/ar/wi/create-credit-memo.pdf
http://web.mit.edu/sapr3/windocs/fopcs06f.htm
Reward if useful to u

A/R credit memo for closed A/r Invoice

Hi Guru's,
Our Client want to make an A/R credit memo for closed A/R Invoice (i.e) payment is already received for that A/R Invoice.
But in such scenario, the he is not able to get the referce of the A/R invoice as it closed... so he makes the stand alone Goods Return , Excise & A/R Credit Memo.
But the problem in this stand alone scenario is that the system treat such case as purchase scenario and hit the repective account of VAT and excise which is very incorrect.
e.g
Instead of hitting - VAT payable account for debit
its hitting           - VAT input account for debit
So please help me in this matter and give the solution as soon as possible ....its urgent.
Thanks & Regards,
Abhishek

hi Abhishek,
Create a new tax code and in that tax code create
vat code with its A/P G/L account is same as A/R G/L account,Similary you repeat it for ed,cs,hcs also.
1. Change Posting period if required.
2.Reverse incoming payment entry.
3.Do A/R credit memo base on A/R invoice with new tax code.
   Incoming excise invoice will be created automatically
   in background.
Incoming excise invoice journal entries will be hit as in
sales scenario.
Hope above answer helps you.
Jeyakanthan

A/P Credit Memo in relation with Goods Return

Dears,
I'm not able to make an A/P Goods Return after Making a Credit Memo.
Because as I have the Credit Memo as a Financial Document, also I want to have a Goods Return as an Inventory Document.
Kindly Advice.
Thanks,
Kerolous Samuel

Dear,
Credit memo is nothing but reversal of total INVOICE.
As you said, you are not able to make goods return,
1) Check stock is available or not.If not revers the consumption entry
2) If you are using QM integration for GRN , system will generate an inspection lot for GRN.So now you need to reverse this inspection lot, so that stock will update in QUALITY STOCK.
Then you can return the stock using MIGO transaction(122 movement type). or
3) Assign the material code in P.O and activate check box as "RETURNS ITEM" and save.
4) Then do GRN using transaction MIGO for this return material.
Kindly check posting dates also for the inventory changes.
Regards,
pardhu

Solution for viewing AR credit memo relevant to AP invoice

In R12, we no longer have the functionality of applying miscellaneous receipts to credit memos. Using this functionality in 11i, we were able to make payments through AR.
In 11i, we were using API (AR_CM_APPLICATION_PUB.activity_application) for creating and applying Misc Receipts to Credit Memos. In this process, it would first create miscellaneous receipt using API (AR_Receipt_API_PUB.Create_Misc) and then apply it to corresponding credit memo. Then standard remittance process in AR would pick up the receipts and generate a remittance file which would be transmitted to the bank as a payment instruction. Hence, we were not using AP for payments.
However in R12, the above mentioned standard functionality has changed. Now the same API (AR_CM_APPLICATION_PUB.activity_application) creates a receivable activity (“Refund”) in AR and creates an AP Invoice in AP instead of Miscellaneous receipt in AR. This AP invoice can then be paid using Oracle Payments. However, this is making our solution more complex in R12 compared to 11i.
Technical Details from R12
1. In R12 API - AR_CM_APPLICATION_PUB.activity_application is calling API “ar_refunds_pvt.create_refund” instead of “AR_RECEIPT_API_PUB.create_misc”, which creates the AP Invoice.
2. Form - ARXTWMAI is calling one pll in one of the form trigger and in turn the procedure (ar_refunds_pvt.create_refund) is called, which creates AP Invoice.
Un-answered questions:
1. Is there anyway to view the refund in AR independently (Other than going to Credit Memo and see the activities)?
2. How aging and customer exposure in AR are impacted, if payment is not made for the refund AP invoice?
3. Is it possible to drill down to the original credit memos from AP Invoices?
4. Invoice fields like pay group, payment terms are defaulted from the Payables system setups. Is it possible to pass those in the API or can we use different values for these parameters other than payable system setup?

Hi Anil,
Thanks for the response. When an invoice has the exact same distribution accounting as a credit memo then your scenario is valid. I think that scenario occurs when you create an RMA for a particular sales order for example. The RMA would then reverse the exact accounting of the original sales invoice.
However a manual credit memo in AR can be applied to any valid invoice for that customer (from any point in time). At a point in time the auto accounting rules may have been different causing the generated account string to be different for the same customer. We regularly have cases where a credit memo for a customer applied to an older invoice for that same customer has different distribution accounts. The credit memo application journal actually adjusts this so that the accounting in GL will be correct.
ie
Invoice from 01-Jan-2008
DR Receivables Account 130000 -> $1000
CR Revenue Account 400000 -> $1000
Now if you create a manual credit for the item in full today, the entry of the Credit memo might look like this
DR Revenue Account 400000 -> $1000
CR Receivables Account 120000 -> $1000
Credit memo application to apply the credit memo to the original invoice:
CR account 130000 $1000
DR account 120000 $1000
Now this functionality was standard functionality in 11i because I guess the designers realised if there was no "correction" journal then your GL would be imbalanced at an account level.
Rgds
Shankar

Reg: Invoices and Credit Memos

Hi Experts,
the sales/purchase report should also adjust the credit memos and show as a report.Is it possible through query or is there any sap b1 standard report.
pls help....

Hi Gordon....
I will try to explain in detail.
I have raised an A/R Invoice.And against the same A/R Invoice i am raising a Credit Memo.
Now when I go into the sales analysis report,i am getting two rows displayed,one for A/R Invoice and the other for A/R Credit memo.
Now my requirement is to have only one row where the invoice gets adjusted to the credit memo and shows the actual and correct value.
hope i am clear.
Thanks
Deepak

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

Applying an USD invoice to an EURO Credit Memo; for receipt applications

Hello,
When trying to apply a USD invoice to a credit memo which is in EUROs it does not allow. If I have the credit memo and invoice in the same currency it works fine. Could anyone help me on this?
Navigation: AR Manager responsibility;
Transaction screen(Credit Memo)->Action(Menu)->Application(Option)
Thanks.
Siva

Hi Nagesh,
.1.) Is it possible for an AR Invoice to have more than one AR Credit Memo?
The credit memo is the clearing document for the invoice and for the returns. If the goods were delivered to the customer and an invoice has already been created, you can partially or completely reverse the transaction by creating a credit memo
*When I partially reversed an amount (and not the inventory), it also reversed the inventory. What I need is to reduced only the amount of the AR invoice. At some point in time, another AR Credit Memo is needed again for the same AR Invoice to further reduce its amount. Is this possible?
Using the AR Credit Memo by Service is definitely not what my client is looking for because they need the actual price per item for the AR invoice.*
2.) Is it possible for a "PAID" AR Invoice to still have a AR Credit Memo?
I dont think you can do this. Simply because payment aginst the Invoice has been made. An A/P invoice needs to be raised again.
I need to think of a workaround to do this because my client usually accepts expiring items after a few years an item was sold and paid. Any suggestion?
3.) Lastly, is it possible for an AR Invoice to reduce its amount "PER ITEM" by AR Credit Memo?
Yes because partial settlement is possible
How to go about it? I need to reduce ONLY the AMOUNT of the item in AR Invoice but the item was NOT ACTUALLY RETURNED.
Many thanks,

GL journal line for AR Credit Memo application to invoices

Hi all,
We upgraded to R12 (12.0.4) in January-09. Unfortunately we've had various issues with AR that we've been working through with Oracle Support. One of the issues has been the accounting for credit memo applications to invoices not being transferred to GL by the Create Accounting program. Previously in 11i all credit memo application to invoices were transferred to GL. So basically you would have a journal for the invoice, the credit memo and the credit memo application itself. The credit memo application was transferred to GL automatically via the Transfer to GL program and had a journal category of 'Credit memo applications'. There seems to be no comparable journal being created for this in R12.
Does anyone know if the Credit Memo Applications should still generate a journal line in GL? Have any customers reported this as being an issue in R12?
Thanking everyone in anticipation.
Rgds
Shankar

Hi Anil,
Thanks for the response. When an invoice has the exact same distribution accounting as a credit memo then your scenario is valid. I think that scenario occurs when you create an RMA for a particular sales order for example. The RMA would then reverse the exact accounting of the original sales invoice.
However a manual credit memo in AR can be applied to any valid invoice for that customer (from any point in time). At a point in time the auto accounting rules may have been different causing the generated account string to be different for the same customer. We regularly have cases where a credit memo for a customer applied to an older invoice for that same customer has different distribution accounts. The credit memo application journal actually adjusts this so that the accounting in GL will be correct.
ie
Invoice from 01-Jan-2008
DR Receivables Account 130000 -> $1000
CR Revenue Account 400000 -> $1000
Now if you create a manual credit for the item in full today, the entry of the Credit memo might look like this
DR Revenue Account 400000 -> $1000
CR Receivables Account 120000 -> $1000
Credit memo application to apply the credit memo to the original invoice:
CR account 130000 $1000
DR account 120000 $1000
Now this functionality was standard functionality in 11i because I guess the designers realised if there was no "correction" journal then your GL would be imbalanced at an account level.
Rgds
Shankar

Copy a sales order to creade a sales order credit memo request

Hi,
I copied a sales order from i.e. 100.000 (type ZMA) to another one i.e. 200.000 (type ZCMR), the last one is a Credit Memo Request.
Now when I try to create the credit memo by VF01 for the sales order 200.000, I'm getting the error message: ZCMR ZPOS cannot be invoiced with billing type ZCM.
I would create the credit memo from the sales order type ZCMR
Is this possible ?
Best Regards

Hi,
In general the Credit memo request would be created referncing the Invoice.
In your case, you have mentioned that credit memo request is created a Sale order. Not sure of the specific scenario if you have any,
on point 2, yes, you may create Credit memo referencing the Credit memo request.
In all places, check for the copy controls from the preceding document to the successing one.
If this helps, Text Removed
Regards,
VBASHA.
Edited by: Lakshmipathi on Feb 3, 2012 5:13 PM
Dont add such comments and deviate the forum rules

How to copy A/R Invoice PLD to A/R Credit Memo

Is it possible to copy a PLD for the A/R Invoice to be a PLD for the A/R Credit Memo? I created a custom PLD for my A/R Invoices and I would like to save as credit memo pld and just make some slight modifications without having to do the whole thing from scratch.
Is this possible?
don

It is possible when you open both PLD in the same time. However, since they have different table links. Better just copy Text and format part. If you do need to copy the database field, you have to change every single field. You may end up with more times to fix problems than time saving from the copy action. Keep in mind that system PLD field should not be deleted.
Thanks,
Gordon

Due date calculation for the credit memo with invoice reference.

Hi,
When we create the credit memo with reference to invoice, the due date for the credit memo is getting copied from Invoice. In this case if the invoice is due on 31.12.2008 and the credit memo is created on 10.09.2009, then the credit memo due date is appearing as 31.12.2008. It should be 10.09.2009 as per the setting in VOFA billing type customisation in "Credit Memo w/vldt".
I would like to know how to customise the below requirement.
If the reference invoice is due after the credit memo creation, the the credit memo should due as per the invoice date.
If the invoice due is past & then the credit memo due date should be Immediate i.e. Due Immediately.
Thanks in advance for help.
Regards,
Nithin

I doubt there is such option. From the past projects I do remember that we made a change in the form to print the document date as 'Due Date' for credit memos. Credit memos were paid at once when they were processed and I think that payment term was copied from the original invoice, which made their due date far in future.

Link multiple sales documents to a credit memo

Hi,
Long time ago someone showed me standard configuration ( SPRO -Sales and Distribution -> Basic Functions) -Where a credit memo can be linked to multiple sales order/billing document.
In the credit memo screen, you enter multiple sales order/billing document in each row and corresponding credit memo in adjacent column.
Does anyone know this?
Thanks.

Hi,
If you want to link one credit memo with multiple sales/billing document
Then create credit memo with reference to previous document when you are on main screen of credit memo
Again go to SALES DOCUMENT >>> create with reference
then specify another previous document and click on copy the item from second previous document should be appear
Note : Due to system unavailable I am not tested this please try
As far as my understanding it will work if customer from previous document are same
kapil

Why need to link credit memo with invoice

Hi, gurus,
I received an AP invoice valued $2222 and then received a credit memo valued $222 about 1 week later.
Now I need to make payment.
I was told it's good to link credit memo with invoice by entering invoice number in the field "invoice reference" when creating credit memo. But I'm not sure why it's better because system will pick up both items anyway when i entered $ 2000 using f-53 to make outgoing payment.
The only reason i can think of is this link will guarantee that credit memo has the same terms of payment with invoice.
Is there any other good reasons? Any help will be appreciated.

Dear,
We need to link credit memo with invoice against for two obvious reasons
1.. Future tracking of all credit memo i-e if we gave excess credits to vendor then it was against which invoice. This will create linkage and tracking of credit memo with invoice that will be shown in FBL1N .
2..At the end of specific time period ,month or quarter ,its a normal practise to reconcile vendor balance as per SAP ledger to that of vendor's own book. At that time you will need credit memo track also that against which invoice was the credit given.
This all can be achived after posting credit memo with refrence to invoice number. Audit perpective should also be kept in mind. Hope this will help you
Regards

Delivery vs Invoice in Sales A/R --- Return vs A/R Credit Memo

Similar Messages

Maybe you are looking for