Debit Memo/ Credit Memo for incorrectly shipped items

[Former Member]

I Understood this: Lets assume you have sold 100 PCs Of Material A ( DLX model), But Due to some human error you have shiped Materia A (VLX) model, which is having price greater than previous one.In that case you will raise Debit memo for that customer.

But what if the customer says that he doesn’t want to pay the difference?

1. does he have to return the product back for exchange of the originally inquired product?

2. is it the clients fault that we shipped the wrong product? and will take a hit for the loss?

q: what if the customer decides to exchange the product ? there will be an inward and outward deliveries created for the 2 products at the clients plant; and will this trigger creation of one credit memo (for returns, since exchange is technically a return) and one debit memo (corrected invoice)?? Or will it be a straight exchange?

Guru's please help me understand this, thanks

[phanikumar_v3]

Seems to me, this was Hypothetical Question.

You created sales order,delivery,Billing for X material,

But during delivery you picked Y instead of X.

Normally to move the material from Factory to Gate--there will be different departments & no.of employees has been employed for this--But still there is a chance for manual mistake(very rare)

As i understood this question can be handled in two ways:(Client dependent)

1.Customer  not accepted this Y goods:

we cannot do returns with parent sales order--because we dont have a transaction in SAP  (with Y material)-So you need to run all sales transactions with Y material followed by returns.

2.Customer Accepted Y material:

So here your actual inventory shows the variations.

So you cancel the parent delivery(so this X will be back into your inventory---if proceeding document exists-need to be cancelled)Change the parent sales order with Y material(you can cancel the parent sales order,Can create new one--it depends on client)

Again here the issue comes with Value variations:

Always you can raise a credit/Debit memo to adjust the receivables.

Phanikumar

[former_member305784]

Dear Amit , As G. Lakshmipathi suggest this is purely domain issue as well as you give  many option for the same issue , we can configure the things according to the option wise , Debit Memo, Credit memo, Returns can be do  according to that. As well as we have to check the other things also, because as customer get the wrong material therefor taking back the material company have to bear some more charges ( Return Charges--Extra Cost for the company)

So, it totally depends on the mutually understanding between the Business and Customer how both are agree on a option . According to the selective option we configure the things .

Thanks,

Dinesh

[former_member183501]

Yes it should be business decision not SAP .

If you have shipped wrong Material ,to which Customer had not Ordered  & now here are few suggestion If Customer accept the (VLX ) Model which he hasn't ordered then Stock will be mismatch as you will be having (DLX) physically  but in stock there will be (VLX) which has been shipped.& according to me you can solve it using Paper Transaction .just inform Customer to provide a discrepancy note/ delivery Note/ Purchase Return for (VLX).Note it should be done only in Paper work & SAP Work not physical work.then based on Delivery Note you can book Sale Return in SAP of ( DLX)& Re-bill To Customer of (VLX) , hence stock mismatch will be solved & if there would be any payment different then it could be solved with Debit/ Credit Note.

Thanks

Kamlesh

[Lakshmipathi]

This is purely an issue to be decided from domain (seller) perspective and nothing to do with SAP. Anyway, to answer your query, if the customer is not willing to pay the difference but insisting to take back the wrongly supplied material, then the seller has to follow the sales return process

G. Lakshmipathi

[former_member220617]

Dear Amit,

here you have exchange the goods physically and then you have to create corrected invoice (debit memo) . here there is no need to create returns , because physically product A(VLX) is not in your stock and as per system stock is there. where as product A (DLX) stock is not in your system and physically it is there .

what about shipment charges or fright charges ? this will decided by business and customer, based on their decision we will raise debit memo .

Regards,

C.B Reddy.

[venu_ch8]

Dear AMIT

First let them take decision because consultant should not involve in this process 

if they asked you to create Debit memo you can go further as per their requirement.

OR If they customer wants to send products back Do return process

Sometimes customer agree the new product which you sent but he will say i will pay old product price

in case if you return the goods and sending again some money company has to bear right .

in this case give that new product to customer with special price same like as another Model Product price .

This is purely Business Decision ..

Thanks a lot