Customer Credit Memo

[Former Member]

Dear guru,

Here is the scenario,

There was a Invoice in legacy System before Go live, now there is a customer return from that invoice and need to create credit memo in SAP system with reference to that sales invoice.

kindly guide me how to utilize my sales return scenario with such a reference which does not exist in sap system. 

Thanks

Regards

Kallol Deb

[Former Member]

Hi Kallol,

In case business is ready to have a dummy posting which they could clear off later, you could have a similar order created (as in the Legacy system) and have it delivered (in system only) and invoiced.

You could process the returns in reference to the new order created. There will be a little data inconsistency for one order but this might have the business track the sales as well. 

FI postings could be adjusted by the AR team later on...

Deb.

[Lakshmipathi]

In such cases, credit would be passed directly from FI instead creating return order.  But as already expressed, there is no thumb rule for this.  It is the Business who have to decide as to how their financial postings should be.  Accordingly, as a consultant, you can share your views to create a CMR without referencing any preceding document.

G. Lakshmipathi

[former_member182378]

G Lakshmipathi, kallol,

If goods have to be returned by the customer to the business, then how would that be addressed by creating (only) a credit memo request and credit memo?

[former_member184080]

Hi Kallol,

Generally at the time of go-live we discuss all these points with business and come to an amicable agreement. So, you can very well discuss with client and explain the constraint. As mentioned by TW and Siva, you have to create returns or credit memo request without original Invoice reference. In the return document/credit memo request keep the original document number in the PO field.

If incase, your client wants that number to printed on the credit memo document then you may have to change the logic or add the logic in output program accordingly.

Regards, Sai Krishna.

[former_member182378]

kallol,

I agree with Siva, create a return order without reference (using a Sales document type for RE process without reference mandatory)  ; in PO number you can give the billing document number for which return is being done (you could also use text or other fields).

[former_member184065]

Dear,

1. Create PO in ME21N ( on which date Customer has given PO to Company ) .

2. Create SO in VA01 and Delivery in VL01N and Billing in VF01 .

3. Create RE in VA01 ,Returns Delivery LR in VL01N and  RE ( credit memo for returns) in VF01 .

Note : Steps 1 and 2 create in past date as when Customer has given and taken Goods and Step 3 create present dates .You need to create one dummy material and run the process with stock .

If you have any doubts please let me know .

Thanks,

NK

[former_member182378]

N K,

You need to create one dummy material and run the process with stock .

I don't agree with your suggestion!

In order to create a return order, you want the user to create the entire Sales cycle and then do the return.

Why should the user create a billing document (for the normal sales cycle) when a billing document is already created in the legacy system?

What and how to address the postings with the creation of the Accounting document?

Further you are talking about dummy material? Manipulating the stock!

Suppose there are 100 return orders to be created, would you suggest to created 400 addition documents? (PO, SO, delivery, invoice)??

Again I donot agree with your suggestion of creating PO is the system (using ME21N)!

Do you create a PO in the normal OTC cycle?

It is only SO>Delivery>Billing (not PO)

[former_member184065]

Hello,

Why should the user create a billing document (for the normal sales cycle) when a billing document is already created in the legacy system?

For record purpose ,we need to create a Proforma Invoice .We need to to know ,how much Quantity,we have sent to customer and how much Quantity ,he is returning .you need to show the records in SAP .If not ,in future ,How can you understand ?

What and how to address the postings with the creation of the Accounting document?

Proforma Doesnt have Accounting .

Suppose there are 100 return orders to be created, would you suggest to created 400 addition documents? (PO, SO, delivery, invoice)??

Yes,If you need records clearly then you need to process/create it .

Do you create a PO in the normal OTC cycle?

Without PO ,how can you know ,how much Customer ordered Material Quantity ( Price details ) to company ?

Note : Not only me as I know up to my experience ,following what I have explained .Now ,tell me ,Have you ever faced this requirement before ,If yes,how did you handle this requirement ?

Thanks,

NK

[former_member182378]

N K,

In your earlier post you had not mentioned Pro-forma invoice (you had mentioned billing document).

Even if you suggest creating Proforma invoice, there are still "opne" points to consider.

The status of the sale would be open, as only a proforma invoice is being create (and not a billing document e.g. F2)

Configuration settings:
a. In RE Sales document type, if Reference mandatory = M (invoice)

Would giving a proforma invoice number in VA01, during creation of RE order work?

b. Has copy control being set up between RE order < F8 billing document?

This would be an additional configuration to be done.

Would the business allow this?

(Sale has not happened, only a proforma is created; should a return process be permitted based on only proforma!)

Do you create a PO in the normal OTC cycle?
Without PO ,how can you know ,how much Customer ordered Material Quantity ( Price details ) to company ?

What does creation of PO mean? (if PO is created in ME21N)

The company wants to purchase some goods.

We are talking about the order placed by the customer.

Do you go and create a PO in the SAP system?

In a sales cycle (SD part), have you suggested your clients to create PO too?

(I don't know the details) But from my understanding - at this stage - this is incorrect!

Coming to how I handled this?

With the client agreement, we handled RE process related to invoices created in the legacy system; create RE orders without reference.

For other RE process, creation with reference was mandatory.

For this two different Sales document types for RE process were created in VOV8.

This was also helpful in reports, identification etc.

[former_member184065]

Dear,

See this is the Flow of process .

your a and b queries answer is above chart .

In a sales cycle (SD part), have you suggested your clients to create PO too?

Yes,I always suggest them not forcing them .

First of all ,I will suggest them to follow the Process means I will provide one doc to Client as how to clear the legacy open doc's.If they want then I will follow or not then  leave it to Clients it and whatever they have thoughts then I will follow .

Note : For you ,just created now this process .

If you have any doubts let me know .

Thanks,

NK

[former_member182378]

N K,

Thank you for configuring a process in order to help members in SCN!

My primary point is you are suggesting too many steps.

Create an entire OTC cycle just to map "reference" for Returns process.

My secondary point is -

To do it the way you are suggesting, it would be lot of extra steps for both the consultant and for the user.

Some of the extra steps could be incorrect -

E.g.

A sales order is created in SAP for which already the business has create a sales order etc.

So why create a sales order the second time for the same sale?

These sales order, delivery "consume" some stock / inventory, how do you account for that inventory.

It is not sent to the customer!

But still this stock is reserved for this "fictitious" sales order, delivery.

[former_member184065]

Dear,

A sales order is created in SAP for which already the business has create a sales order etc.

So why create a sales order the second time for the same sale?

These sales order, delivery "consume" some stock / inventory, how do you account for that inventory.

It is not sent to the customer!

But still this stock is reserved for this "fictitious" sales order, delivery.

We have created Sales Order in Legacy not in SAP .You need to upload the stock for returns purpose also .Without stock ,you can not create RE .So,in this case ,you need upload the stock right .Coming to the point is,when you are going to upload a stock ,there you can see one field as Text related ,here we need to maintain as Legacy Stock .

If you have any doubts let me know .

Thanks,

NK

[siva_vasireddy2]

Hi,

   you can only create customer retunrs without Reference and mention the Legacy Invoice number in some Texts for Future checking.

Shiva