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Invoice correction request vs. credit memo request

Apr 04 at 02:42 AM

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Hi all,

I have a question re the difference between invoice correction request and credit memo request. I have found this post

but still could not appreciate when we would choose to use invoice correction request over credit memo request.

I have always been using credit and debit memo request. I also understand that the invoice correction request may drive a debit memo to be created during billing rather than a credit memo. But apart from that, are there any reasons why we would recommend customers to use invoice correction request?

Appreciate any pointers on the above.

Thanks

SF

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Hopefully, the following SAP Community Wiki might be helpful to you for your understanding.

- https://wiki.scn.sap.com/wiki/display/ERPLO/CUSTOMER+COMPLAINTS

That wiki clearly states the different scenarios around Customer Complaint Management.

If you still have any specific question, please revert back to us.

Thanks,
JP

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Thanks, this is a great document! It is also good to know that perhaps a limitation to the invoice correction request is that it needs a reference to the billing document. In other cases, a standard credit memo or debit memo request would be more suitable. Would be interesting to hear what others have to say.

Cheers

SF

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5 Answers

Best Answer
G Lakshmipathi
Apr 04 at 07:21 AM
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In short, if the user found some calculation mistake or any issue in billing document, immediately once it is generated, you can go for Invoice Correction Request. On the other hand, after some couple of months, if the end customer reported as pricing issue and your client would like to set right that, then, in that case, you can go for credit memo.

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As suggested by Lakshmipathiji and further to his answer-

Invoice correction request can be created to a customer if payment not received for the incorrect invoice..

If payment came from customer and FI-clearing may or may not be done-then they can go with Credit memo request...

Hope you can got it now...

Note:Both of the above processes can be changed as per business needs..

Phanikumar

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Former Member

Not convinced with G Lakshmipathi comment about "time or number of months" being a factor to choose either RK or CR process.

Good question

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Siow Fong Chen Apr 05 at 08:20 PM
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Thanks all for the response. On top of the responses given, I guess the other thing to consider is the associated accounting entries as the credit memo for the invoice correction request generates extra revenue lines that may or may not suit some organisations?

Regards

SF

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Raja Sekhar Apr 05 at 11:14 AM
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Hi,

Invoice correction request : we will do this if any user mistakes (Over charged (Credit Memo) / Undercharged ( Debit Memo) ) in invoice. Hearer there is no goods movement.

Credit Memo : We will issue credit memo in case of Goods damaged and Secondary sales process , here we may have some goods movement ( Return Goods (Damage, Expired & Over dumped) Scenario )

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Kamlesh Kumar Arya Apr 08 at 04:51 PM
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Hi,

If you have gone through the link which you have shared. "Invoice Correction Request" is always created with reference to the preceding document i.e Faulty Invoice. That is one of the differential factor if you compare with Credit/Debit memo request.

Regards

Kamlesh

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Former Member Apr 08 at 06:23 AM
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Probably (I am not sure) it is a Business decision.

I have seen the Business having both - Invoice correction & Credit,Debit setup. They can choose based on the process, scenario, customer.

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