Credit Memo

[Former Member]

Hai all,

1. How we will go in case of Returns/? Whether we directly bill the Returns goods or based on the Returns document number we will create the credit memo request and Credit memo?

2. Where we do credit memo Request and Invoice Correction Request and what is the difference?

Regards,

Kedar.s

[reazuddin_md · Accepted solution]

Hi,

1)- Returns is the document placed by the customer for the received goods, if itz damaged in transporation or found any defective of the good/ quality issues.

Based on this document company may replace the goods , r send credit memo for the damaged goods,

eg: Returns order -RE,

Returns delievery -LR

Credit memo - RE, - ( if delievery occurs)

If delivery wont occur,

Credit memo request - G2, & Credit memo-G2

2)Credit memo request is created for the goods damaged/poor quality

where as invoice correction request happend to correct the previous document(it should be invoice only)- bcoz of incorrect price or quantity.

*Hope it clears

*Reward Points

[Former Member]

hi when goods or damaged intrasport thecustamer want to return the goods to bussiness then we create sales dacument RE -LR-RE,i goods return vary expencive goods would scrap there and go to G2-G2

[Former Member]

Hi,

1. In case of returns, the cycle is

a. Create Return Sales order (VA01)with respect to Billing document

b. Create Returns Delivery (VL01N) with respect to Return sales order

c. Create Credit Memo (VF01) w.r.t delivery.

No need of credit memo request in this case. You can create a credit memo request when you have wrongly billed the customer and there is no goods movement involved.

2. Credit memo request is created when you have wrongly billed the customer for some extra amount or some adjustment is involved.

[Former Member]

Hi Kedar,

in case of Returns :

First we have to create the Credit Memo Request( Sales Document) with Reference to the Preceeding Document and we will create the Credit memo ( Billing Document) with reference to this Credit Memo Request.

Credit Memo Request:

If the customer complains that the price was miscalculated (for example, too high) you request a credit memo for the appropriate sum, and you do not take the goods back.

Invoice Correction Request:

The invoice correction request works in the same way as credit and debit memo requests, but here you enter the price or quantity that should have been calculated. The system then calculates the difference and creates either a debit or a credit memo, depending on whether the difference is negative or positive.

Hope this clarifies your doubts and Please Reward Points if really Helpful,

Thanks and Regards,

Sateesh.Kandula

[rmazzali]

1) it depends on the way you work and biz requirements: sometimes it is too expensive to get the goods back, so you make the credit note based on the sales order because goods will never get back. Sometimes you make the credit note only if the customer returns the goods, so the credit is delivery related. Try to understand with the business people wich is your case.

2) The credit memo is used in many cases to give some money back to the customer for several reasons. The Invoice correction is very usefull if you make mistake during invoicing because in this way you also keep updated COPA.

pls. reward if helpful

Roberto

[Former Member]

hi,

When you are physically accepting goods returned by the customers you should use return sales order type RE, followed by returns delivery and then a credit memo(a billing doc) to credit the value of the sold goods to your customers account.

When the goods are not physically returned by the customer and you plan to just credit the value of the sold goods to your customers account should start with Credit memo request (CR).

with regards

Rajesh