Third Party Credit Memo.

[Former Member]

Hi Friends,

When we receive a credit Memo from the Third Party for say defective goods then this can be directly sent to the Customer as a credit Memo ( Credit Note). The Billing type here is G2S and The Item category is TASG.

Now my question is when we create G2S then to which document does it take reference from? Will it be from the Invoice F2 raised to the customer or from the Sales order OR of the customer. When I create a G2S with reference to the order OR after the Invoice F2 has been raised, the system throws up an error stating that this document has been completely Invoiced.

Please let me know how do I solve this issue.

Nagesh Murthy.

[former_member183879]

Hi Nagesh,

In any credit memo scenario, always enable the creation of Credit Memo Request and then Credit memo. When the credit memo request is to be created, make sure that it is always created with reference to the invoice document only and not reference to the sales order, as the objective of Credit memo is to correct the prices in the invoice document. This will help you in various scenarios like exchange rate where the value of sales order and the value of invoice can be different in the local currency due to ex.rate fluctuations.

As credit memo takes care of incorrect prices, having a document flow of credit memo request with reference to sales order is incorrect.

With reference to the error message, it is a valid message as an invoice has been created with reference to the order. You should not create a credit memo with reference to a sales order(OR), for credit memo, u shd use a credit memo request only as the reference.

Hence the flow for your question is

Sales order>Invoice>Credit Memo req-->Credit Memo

OR>F2>G2W(Confirm with others on the doc type)-->G2S

Pls lemme know if you need further clarifications in this topic.

[Former Member]

Hi Nagesh,

Take the reference of an invoice for creating a credit memo request.

System will allow you to go ahead.

We should take the reference of the billing doc so that we can raise a CR memo req only for the quantities which have been billed.

Regards

Karan