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Invoice Correction

Hello All,

Can any one explain me, what is the process for invoice correction and what are the document types used.

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    Former Member
    Aug 14, 2007 at 12:30 PM

    sales document used in complaints processing to correct the quantity or price of one or more items in an invoice.

    The invoice correction request is the same as the differential credit memo in the SAP R/2 System.

    Use

    You can create an invoice correction request if the wrong prices have been calculated for the customer. The invoice correction request can be automatically blocked by the system until it has been checked.

    The system calculates the difference between the amount that was originally calculated and the corrected amount for each item.

    Once it has been approved, you can remove the block. The system creates a credit memo with reference to the invoice correction request. If the remaining amount is positive, the total value does not have a + sign, if the remaining amount is negative, the total value has a – sign.

    Structure

    An invoice correction request is a type of sales order, like the standard order. For more information on sales documents, see Working With Sales Documents.

    An invoice correction request has the following structure:

    Header

    This contains the data that is relevant for the whole invoice correction request, such as sold-to party and payer, and the total value of the invoice correction request.

    Item pairs

    Two items are automatically created for each item from the invoice, to be copied for the invoice correction request:

    First: Credit item

    Second: Debit item

    These contain the same value and quantity.

    In the credit item, the system credits the customer with the full value. If you change the debit item (for example, due to new pricing or a change in quantities), this results in a difference amount.

    In most cases, an invoice correction request is created with the aim that a credit memo is generated. In the standard system, the invoice correction request is therefore characterized as a credit memo request, which means that the system creates a credit memo based on the invoice correction request.

    In Customizing, you can change this, so that the invoice correction request is characterized as a debit memo request. In this case, the system creates a debit memo, based on the invoice correction request. You can change these settings in Customizing under Sales ® S ales Documents ® Sales document header ® Define sales document types in the Sales document categ. field.

    Regardless of whether the invoice correction request is a credit or debit memo, the first item is always a credit item and the second is a debit item.

    If you want the system to generate a credit memo for a positive remaining amount, and a debit memo for a negative remaining amount, you need to set an additional sales document type in Customizing, for example, ZRK1 (invoice correction request for debit memos). This sales document should be characterized as a "debit memo request". In addition, you make the setting that this sales document type should be billed with a debit memo (for example, with the billing type L2 ).

    Before you create an invoice correction request, you need to consider from the very start what it should be generated for. If the aim is a credit memo, you use the sales document type RK for the invoice correction request, if the aim is a debit memo, you use the sales document type ZRK1 .

    You can find further information about setting up a new sales document type in the implementation guide (IMG) under Sales and Distribution ® Sales ® Sales Documents.

    You can find further information about setting up a billing type with which this sales document type should be billed in the IMG under Sales and Distribution ® Billing ® Billing Documents ® Maintain Copying Cotrol for Billing Documents, Activity: Copying Control: Sales document to billing document.

    Integration

    An invoice correction request is used for correcting the quantity or price of one or several items in the invoice.

    Prerequisites

    You create invoice correction requests with reference to an invoice.

    In Customizing, the billing type for the invoice to be copied must contain value M. You can set this in Customizing for Sales and Distribution under Billing ® Billing documents ® Define billing types in the SD document categ. field.

    Process Flow

    Create an invoice correction request with reference to a billing document.

    You can refer to the same invoice correction request more than once.

    In contrast to credit and debit memo requests, you cannot create an invoice correction request with reference to a quotation or a sales order.

    The permitted billing types for the invoices are determined in Customizing under Sales and Distribution ® Sales ® Maintain copy control for sales documents.

    You can block the invoice correction request from being billed in Customizing. Go to Sales ® Sales Documents ® Sales document header ® Define sales document type in the Billing block field in the Billing section.

    The system creates two items in the invoice correction request for each item in the invoice:

    Item

    Indicator

    First item

    Credit item

    Credits

    Second item

    Debit item

    Debits

    You can maintain the credit and debit indicators in Customizing for items under Sales ® Sales Documents ® Sales Document Items ® Define item categories. The Returns field in Business data should be selected for credit items but not for debit items.

    While working with the invoice correction request, you should regard the two items as belonging together.

    You can also set the system so that it doesn’t repeat pricing.

    You can control this in Customizing under Sales and Distribution ® Billing ® Billing documents ® Maintain copying control for billing documents in the Pricing type field. The contents of the field depend on the category of the invoice correction request.

    Sales document category

    Field contents

    CR (credit memo request)

    E

    DR (debit memo request)

    F

    You can run new pricing for the debit memo request by defining another pricing category in the pricing category field 2.

    In the credit item, the system completely credits the incorrect invoice item. You cannot change the credit item (apart from the Deletion, Reason for rejection, Billing block and Account assignment fields).

    Enter the correct price or quantity in the debit memo item. You can let a new pricing run for the item. The correct amount is finally posted.

    The system calculates the difference between the credit and debit memo item. If there are several corrected items, the system cumulates the values of all the items and calculates a total value.

    As in credit and debit memo requests, you can:

    – Set a billing block for the invoice correction request (or change the settings in the billing type in Customizing so that the system does it automatically).

    – Enter a reason for rejection for one or several items.

    You can only delete credit items together with their corresponding debit items.

    You delete items that you haven’t changed with a function.

    The system generates a credit memo. If the total value is positive, the credit memo item does not have a + sign, if the total value is negative, it has a – sign.

    If the invoice correction request is characterized as a debit memo request, the opposite occurs.

    The title of the printout for the credit or debit memo depends on the characteristic that has been assigned to it (sales document category) and not the total value:

    Sales document category

    Title

    CR (credit memo request)

    Credit memo

    DR (debit memo request)

    Debit memo

    The graphic below shows the document flow for creating an invoice correction request.

    Result

    You generate a credit memo with a positive or negative value with reference to an invoice correction request.

    Example 1: Invoice correction request vs. credit memo request

    The quantity in the invoice is for 10 pieces. However, 8 were required so the customer expects a credit memo for 2 pieces.

    You have to enter the following quantities in the relevant documents:

    Sales document type

    Quantity

    Credit memo request

    2 pieces (quantity to be credited)

    Invoice correction requests

    8 pieces (correct invoice quantity)

    The invoice correction request then looks like this:

    Credit item: 10 pieces (copied from the invoice)

    Debit item: 8 pieces (correct invoice quantity)

    Example 2: Quantity difference

    10 pieces are delivered and invoiced but 2 of them were damaged. The customer would like a credit memo.

    Item

    Contents

    Total

    Credit item

    10 pieces at 100 USD

    1000 USD

    Debit item

    8 pieces at 100 USD

    -800 USD

    Difference (credit memo)

    200 USD

    Example 3: Price difference

    10 pieces are delivered but their price in the invoice is too high. The customer would like a credit memo.

    Item

    Contents

    Total

    Credit item

    10 pieces at 100 USD

    1000 USD

    Debit item

    10 pieces at 80 USD

    -800 USD

    Difference (credit memo)

    200 USD

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    Former Member
    Aug 14, 2007 at 11:01 AM

    Hi,

    Invoice Correction Request (ICR)

    For customer/business compensations instead of using 2 different documents i.e. G2 and L2 , a single sales document can be used. This document is called Invoice Correction Request.

    Doc. Type: RK

    In ICR system creates 2 line items for every single item in the sales order. One is a credit item and another one is a debit item.

    Customer compensation can be carried out thru debit item only

    Reward Points

    Regards

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  • Aug 14, 2007 at 11:05 AM

    inv correction req is RK-sales doc type. in this for every item debit entry and credit entry will be created and you can delete these combition if there is no correction for particular item.

    if any correction is there based on it deit /credit is created in billing doc

    then credit note(debit note)- g2 with ref to RK

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    Former Member
    Aug 14, 2007 at 11:05 AM

    Hi,

    It is used in case of complaints processing where you need to change the qty or the price, the document type that is used for the same is RK.

    It triggers a subsequent credit memo.

    Hope it helps.

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