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credit memo

Former Member
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Hi all

can u plz tel me d difference between credit memo and credit for returns used in consignment

Thanks regards

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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got it

Former Member
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Hi there,

Credit for returns is when a customer returns the goods (for eg damaged or over delivery). In that case we process the returns order type, create a return delivery & raise a credit memo same as how we invoice after satndard delivery.

So this will credit the customer to give him back the value of goods returned.

This may not be the case all the times. Some times there may not be even returns (coz cost of returning is more than the value the customer gets). In that case he will scrap the goods at his side & ask for the credit memo. In that case, we create a credit memeo request & process credit memo. There is no delivery involved here (dummy delivery if legal implications).

Also sometimes we may over charge the customer or bill him for the goods he has not taken. In that case we create an invoice correction request. System will calculate the balance amount that we need to pay the customer & raise a creadit memo to pay back. Invoice correction requests RK will usually have a default billing type G2 credit memo.

Fot further info you can see http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm

Hope this helps.

Former Member
0 Kudos

Hi,

Both are having the equal behaviour.

Credit Memo: This is used to give commission, charges, rebates in business process to customer

Credit for Returns: This process is used in case of material retuns. In return process, if the material is full damaged and customer insists to money back then company raises a credit for retuns after return the material to factory premises.

Check the below links

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/erplo/debit%2band%2bcredit%2bmemo

Rewards if it helps

Regards

Goutham