SD2060
Credit-Debit Memo Processing
Prepared For HG Metal Manufacturing Limited
Prepared By Yap Yong Chun
Date of Document 12th December 2007
Release No: V1.0
The materials presented in this document shall not be disclosed. No part of this document may
be re-produced, in any form or by any means without permission from Ledge Consulting.
Business Requirement
Definition
Table of Content
1. CHANGE HISTORY............................................................................3
2. INTRODUCTION.................................................................................4
2.1 ACCEPTANCE /SIGNATORY OF SPECIFICATION.................................................................4
2.2 PURPOSE OF DOCUMENT..................................................................................................4
2.3 INTENDED AUDIENCE.......................................................................................................4
3. ABBREVIATIONS...............................................................................5
4. BUSINESS REQUIREMENTS............................................................6
4.1 SCOPE OF REQUIREMENT.................................................................................................6
4.2 SAP CONCEPTUAL DESIGN..............................................................................................7
4.3 SAP FLOW DESCRIPTIONS...............................................................................................8
4.3.1 Creating the Credit/Debit Memo Request..............................................................................8
4.3.2 Release Credit/Debit Memo Request.....................................................................................9
4.3.3 Create Credit / Debit Memo..................................................................................................9
4.4 SAP CONFIGURATIONS..................................................................................................10
4.5 ABAP & OTHER TECHNICAL REQUIREMENTS..............................................................13
4.6 Other Remarks...............................................................................................................14
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Business Requirement
Definition
1. CHANGE HISTORY
Date of Update Updated By Version Change Description
12 Dec 2007 Yap Yong Chun 1.0 Initial Creation
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Business Requirement
Definition
2. Introduction
1 Acceptance /Signatory of Specification
This document supersedes any previous document on the subject of the requirements of application and
software functionality for the project.
Signature on this Business Requirement Definition document by authorized user representative indicates
satisfaction and acceptance of this document as a description of the complete functionality required of the
project. Any changes to the functional requirements described in this document will be noted as change
requests and this document will be amended to reflect these changes.
Business User Representative
Designation: Process Owner
Name: Elise Tan
Date:
Business User Representative
Designation: Process Owner
Name: Jasmine Foong
Date:
Ledge Representative
Designation: SD Consultant
Name: Yap Yong Chun
Date:
2 Purpose of Document
The primary purpose of this document is to capture the functional requirements of the SAP Project. It
represents the project deliverable to the users. The requirements documented here are the results of the
requirements gathering phase. The purpose of document is to capture the functional requirements of the
SAP Project. It represents the project deliverable to the users also states the assumptions used in the
design and development of the system by the Ledge Consulting.
3 Intended Audience
This document is intended for review by various user-groups within HG Metal Manufacturing Limited with
vested interests in this Project. These groups should check the validity of business assumptions, the
accuracy of the business functions, outputs and the flow of processing logic described in the document.
When accepted, it will form the basis for detailed design and development of the system. This document
is also meant for Ledge Consulting Pte Ltd in the design, development and testing phases of the system.
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Business Requirement
Definition
3. ABBREVIATIONS
ABAP Advanced Business Application Programming
BOM Bill of Material
CC Cost Center
CO SAP R/3 Module Controlling
CoA Chart of Accounts
CoAr Controlling Area
CO-CCA SAP R/3 Controlling Sub module Cost Center Accounting
CoCo Company Code
CO-OPA SAP R/3 Controlling Sub module Order and Project Accounting
COS Cost of sales.
DC Distribution Channel
e.g. example given
FI SAP R/3 Module Finance
GI Goods Issue
GR Goods Receipt
i.e. id est (this is)
IV Invoice Verification
MM SAP R/3 Module Materials Management
MP Mass production (parts)
MPS Master Production Schedule
MRP Material Requirements Planning
P&L Profit and Loss
PA SAP R/3 Sub-module Profitability Analysis
PC Profit Center
PDO Production Order
PR Purchase Requisition
PO Purchase Order
PP SAP R/3 Production Planning Module
SAP Systems, Applications, Products (company name)
SD SAP R/3 Module Sales & Distribution
SIS Sales Information System
SO Sales Order
SOP Sales and Operations Plan
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Business Requirement
Definition
4. Business Requirements
4 Scope of Requirement
This document describes the activities where price discrepancy is reported by customers or when
customers report of short supply and request for a credit note instead of replacement.
This process is not required if price discrepancy is discovered before the invoice is dispatched to the
customer. In this situation, Finance can cancel the invoice and make the necessary changes in the sales
order and recreate the invoice again.
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Business Requirement
Definition
5 SAP Conceptual Design
The process of creating credit / debit memo request is used when the customer needs to be refunded /
charged for billing adjustments.
The following options are available for making adjustments to the customer:
Credit memo for the previous invoice item
Debit memo for the previous invoice item
The process is initiated by a user from sales creating a credit / debit memo request document. In both
cases, the document will be blocked for billing at the time of saving. Another user with the appropriate
authorization will use the standard work list to release credit memo request document.
Once the credit / debit memo request is released, a credit / debit memo document can be created from
the released credit memo / debit memo request. The accounting documents will be created in background
when credit / debit memo document is saved. Print-outs can be generated to the customer once the
credit / debit memo document is saved.
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Business Requirement
Definition
6 SAP Flow Descriptions
Business
SD02060
Process ID
Business
Process Title Credit-Debit Memo Processing Version 1.0 Last Edit Date: Dec 12, 2007
Sales Coordinator Other Processes /
Sales Manager Finance
Note
Start
10
Verify Billing
Discrepancy
20
Overcharge/ 40 50
Create Credit Memo
Undercharge Overcharge Release Billing Create Billing
Request (with order
customer? Block Document
reason)
30
Create Debit Memo
Undercharge
Request (with order
reason)
60
Print Billing
Document
SRSFI3010
Accounts
Receivable
6.1 Creating the Credit/Debit Memo Request
Upon verification of the billing discrepancy, Customer Service will create credit / debit memo request
document.
For creating the credit / debit memo request documents, the following options can be used:
Credit Memo Request with Invoice Reference
Debit Memo Request with Invoice Reference
Credit Memo Request without Reference
Debit Memo Request without Reference
During creation with invoice reference, it is possible for the user to display the items from the invoice, and
select the ones that are to be copied across to the credit / debit memo request. When created with
invoice reference, all document data will be copied from invoice document including item details and price
of the item.
SAP supports only single invoice to single credit memo request copy. Hence one credit memo request will
only be created with reference to one invoice.
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Business Requirement
Definition
6.1.1 Billing Block
Billing block will be set for the credit / debit memo request when it is saved. This field will be made display
only in the document so that user can’t change it. Because of this block, the credit memo can’t be created
unless an authorized person releases the block.
6.1.2 Order Reason
Order reason will be used to indicate the requirement of raising credit / debit memo request documents.
The order reason will be made a mandatory field so that analysis is possible. This field is at the header
level.
6.2 Release Credit/Debit Memo Request
An authorized user will use a work list to release the credit / debit memo request documents for billing.
The user to select the document to be released can use a set of selection criteria. The user can also drill-
down from the work list to display or edit the document if so authorized.
6.3 Create Credit / Debit Memo
Finance will create the credit/debit memo document from the credit/debit request document.
There are two options available to do this:
Process individual credit request document
Collective Billing
One credit/debit memo document will be created from one credit/debit request document no matter which
of the above option is used.
An accounting document will be created in background when credit / debit memo document is saved.
Printing of credit / debit memo document can only take place when accounting document is posted. The
output type requirement routine will be used to ensure that the accounting document has been posted.
In general, the following account entries will take place when accounting document is created from credit
memo arising from price difference. Note that the account entries do not apply to Returns credit note.
Please refer to [SD2050 – Customer returns] for details.
Transaction Debit/Credit Account
Billing Dr Sales Revenue
Cr Customer
Dr Output tax
And for debit memos:
Transaction Debit/Credit Account
Billing Dr Customer
Cr Sales Revenue
Cr Output tax
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Business Requirement
Definition
7 SAP Configurations
Sales Document Type
ZCR Credit Memo Request
ZDR Debit Memo Request
Item Category Group
NORM Standard item
Item Category
ZG2N Credit Memo Req Item
ZL2N Debit Memo Req Item
Billing Blocks
08 Check Credit Memo
Order Reasons
C01 Price difference was too high
C02 Price difference was too low
C03 Currency error
Text Determination procedure
Sales Document Header
Z1 Sales Header
Sales Document Item
Z1 Sales Item
Billing Header
Z3 Billing Header
Billing Item
Z3 Billing Item
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Business Requirement
Definition
In-completion procedure
Sales Document Header
14 Credit Memo
15 Debit Memo
Sales Document Item
21 Credit/Debit Memo item
Document Pricing Procedure
A Standard
Pricing Procedure
ZRVA01 Standard Pricing
Condition Types (relevant to this process)
ZPR0 Price
MWST Taxes
Copying Control: Billing Document to Sales Document
Target Sales Doc Type Source Sales Doc Type
ZCR Credit Memo Req. ZF2 Tax Invoice for Delvy
ZDR Debit Memo Req ZF2 Tax Invoice for Delvy
Billing Doc Type
ZG2 Credit Memo
ZL2 Debit Memo
Copying Control: Sales Document to Billing Document
Target Billing Type Source Sales Doc Type
ZG2 Credit Memo ZCR Credit Memo Req.
ZL2 Debit Memo ZDR Debit Memo Req.
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Business Requirement
Definition
Output Type for Billing Document
ZRD0 Tax Invoice
Account Determination Procedure
ZKFI00 Account Determination
Condition Type for Account Determination
ZKFI Account Determination
Access Sequence for Account Determination
ZKFI Account Determination
Condition Tables for Account Assignment
001 Sales Org / Cust AAGrp / Material AAGrp / AcctKey
002 Sales Org / Cust AAGrp / AcctKey
003 Sales Org / Material AAGrp / AcctKey
005 Sales Org / AcctKey
004 Sales Org
G/L Account Assignment
TBD
Number Ranges
ZCR, ZDR, ZG2, ZL2
Refer to [D2 SRSSD1010]
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Business Requirement
Definition
8 ABAP & Other Technical Requirements
- Tax Invoice (Credit Note/Debit Note)
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Business Requirement
Definition
9 Other Remarks
Nil
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