SAP- Debit note and Credit note

SAP Debit Memo – It is a SD module (sales document in SAP) is being used for complaints processing
to request a debit memo for a customer. It is used when we want to charge something more to
customer and want to debit with some amount. For example , if prices for the customer were low, (
calculated with the wrong scaled prices) we can create a debit memo request in SAP. SAP debit memo
request can be blocked so that it can be checked and after its approval we can remove the block. It is
like a standard order. The system uses the SAP debit memo request to create a debit memo in SAP.
SAP Credit Memo – When we want to give some credit to customer we use this sap credit memo. It is
a transaction that reduces amounts receivable from a customer. For example the customer received
short quantity or damaged and return damaged goods.
SAP debit memo is a transaction that reduces amounts payable to a vendor because; weu send
damaged goods back to our vendor.

In SAP creating a credit or debit memo request facilitates us to create credit or debit memos based on
a business requirement. To do this first we have to create a SAP sales document with the SAP order
type for a credit or debit memo request in SAP. We can create the debit or credit memo requests by
using following steps

Do we want , without reference to an order

Do we want with reference to an existing order
Here we can enter which order the request related to.

With reference to an invoice

Here we enter which invoice the request refers to.
In all cases, we need to specify the value or quantity that should be in the credit or debit memo.

We can block the credit or debit memo request in SAP from being billed in Customizing.

Use path : Sales = Sales Documents = Sales document header = Define sales document type and
select the billing block field in the billing section. The request for a credit or debit memo can then be
approved or rejected.

To create Credit / Debit Memo request in SAP, use SAP transaction code, SAP tcode
- Use the same procedure that you use for Creating Sales Orders i.d SAP TCode VA01
- enter Order Type as CR for Credit Memo and DR for Debit Memo request
During creation of the request we have to enter Customer Number and Reason for the debit or credit
memo request. and material or article and its quantity. Once the credit or debit memo request is
released in SAP, we you can create credit or debit memo in SAP. The credit memo request will be
automatically blocked for checking with Billing Block 08 (to check credit memo) & 09 (to check debit
memo) for the sales order type “CR” .

If it is not so you can customize the block for credit memo requests in Customizing for SD when you
define the order type Sales and Distribution = Sales = Sales Documents = Sales Document Header=
Define sales document types in SAP.

The release of block in SAP is allowed to be removed only by the people who are authorized for it. If
the amount is within acceptable limit the block is automatically released otherwise all the people
assigned to this job receive a work item in their integrated inbox for release.

If the request is not automatically blocked in SAP by the settings in Customizing, we can set a delivery
or billing block manually in SAP.
Logistics= Sales and distribution = Sales.
Choose Order = Change.
Enter the sales document number, or search for it.
If all the items have been blocked, choose Select all.
If only some items should be blocked, select the corresponding items.
Choose Edit -> Fast change of… -> Delivery block or Billing block.
Enter the delivery or billing block for the header or individual items.
Choose Copy.
The system copies (or deletes) the SAP delivery or billing block in all the selected items.
Save your document.

Complaints and returns occur in practically every area of business. Depending on the transaction, goods
are either sent back or invoices are corrected.

Processes in Complaints Processing:

• You create returns, a credit and debit memo request, a credit and debit memo or an invoice correction
request after you have:

• Created a sales order

• Delivered the goods to the customer, and billed the customer for the goods
• Create a return request (authorization) if the customer returns the goods to you.

• You create an invoice correction request if there is a price or quantity deviation.

• You can create the returns or a credit or debit memo request with reference to a sales order or a billing
document.

• You create the invoice correction request or credit/debit memo (without credit/memo request) with
reference to the billing document.

For returns, credit/debit memo request or invoice correction request, billing takes place after checking and
approval, by creating a credit or debit memo.

What is the difference between credit memo request and credit note and can we
see the credit note in the system?

Credit memo request will be created when you have to pay to the customer. (excess
bill or damages or change in the price).

Credit memo request is a Sales document type (VA01), based on this you will create
credit memo (VF01).

While creating the credit memo you will get a block which will be removed by an
authorised person set.

The credit memo can be seen with transaction VF03 and credit memo request with
VA03.

Credit memo request is a sales document used in complaints processing to request a

credit memo for a customer. If the price calculated for the customer is too high, for
example, because the wrong scale prices were used or a discount was forgotten, you
can create a credit memo request. The credit memo request is blocked for further
processing so that it can be checked. If the request is approved, you can remove the
block. The system uses the credit memo request to create a credit memo.

You can use credit memos in Sales and Distribution (SD) for assigning credit memo
requests to the open invoices and in Financial Accounting (FI) for assigning credit
memos and payments to the open invoices and carry out clearing with them. If you
use both Financial Accounting (FI) and Sales and Distribution (SD), there is a 1:1
relationship between the credit memo request and the credit memo item posted in
Financial Accounting (FI). As soon as you bill the credit memo request together with
other sales orders, or distribute the items of one credit memo request to several billing
documents, the assignment is no longer valid and the system will not process it.

For credit memos, credit memo requests, and payments, you have the following
assignment options:

 Assignment to a single invoice

 Assignment of a partial amount to an invoice
 Assignment to several invoices

When you post credit memos, the payment programmed processes them
automatically. If the credit memo is specifically related to a particular open invoice
item, the payment program automatically attempts to offset the credit memo against
the open item. If it is not possible to completely offset the credit memo against an
invoice, you can post a debit memo to the vendor, who is to reimburse the amount.
Then you can apply a multilevel dunning program.

Credit Memo Based On Return Delivery

I have sales return scenario where I want to make credit memo based on return
delivery.
What are the steps and settings for copy control for creating credit memo in
VF01 with return delivery Vl01n

Credit memo in Return always refers to the Return order NOT to the Return delivery.

So create the Credit memo with reference to the Return order, there will be no error,
but before that ensure that you have released the block from the Return order.

First copy billing type from G2 (T-code VOFA) and that copied billing

Type maintain in sales document type (T-code VOV8) in for delivery related billing.

Credit memo request is the request for issuing credit to the customer. This will give additional control over
the process.
every company will have stringent control over issuing the credit to the customer, an authorised person
should approve the same. If the credit memo request is created, it will be blocked for billing, need to be
released by an authorised person for further processing. This is a sales document.
Credit note is notheing but credit memo. This is a billing document. There are many scenarios a company
issues credit to the customer. Most common is the complaints processing. If you create a credit memo
with reference to a credit memo request, in the credit memo request level we can have a authority check.

The credit memo can be seen with transaction VF03 and credit memo request with VA03.

Remove a Payment Block

When to Use
When a vendor payment is processed against a purchase order and the invoice is more than
10% above the original purchase order price, the system automatically places a block on
the payment document (the 51XXXXXXXX document). The payment block takes place when
the price change occurs directly on the purchase order line item. If the price change is
accounted for by using the G/L account tab, an automatic block does not take place. For a
cheque to be produced, the payment block must be removed.

Steps
1.Identify if a block has been placed.

The user is notified of a payment block at the time of posting. Although the balance is 0.00,
there is a yellow light presented beside the balance and there is a Messages icon displayed.

When the Messages icon is selected, a message indicating the amount of the difference is
indicated.

Further, when the document is saved, a message is displayed beside the document number
that the document has been blocked for payment.

Removing a Payment Block may be performed at the time of posting through Purchasing or
afterwards through Accounts Payable.
2.Remove the block - 2 methods.

 In purchasing at the time of posting.

 In accounts payable after posting.

Detailed Procedures

Access the transaction using:

Method 1 - Removing a Payment Block in Purchasing at the time of Posting

Logistics >> Material management >> Purchasing
Menu >> Purchase Order>> Follow-on Functions >>
Logistics Invoice Verification >> EnterInvoice
Transaction
MIRO
code

Step 1
To remove a block at the time of posting, you must access the payment document
(51XXXXXXXX) immediately after completing theposting. Click on Invoice document >>
Display
The document you just posted will be displayed. Click on documents.

A pop-up box listing the accompanying (system created documents) is displayed.

Click on Accounting document. The invoice document will be displayed.

Step 2

Double click on the vendor line item, which is the first line item to display the payment
screen.

If this in an OTA Vendor, you will need to click on or hit enter when the Address screen
appears.
To remove the block, simply click on the change icon, this will open the Pmnt block field for

change. Delete the R and click on to save the document.

Method 2 - Removing a Payment Block through Accounts

Payable after Posting

Step 1
Accounting >> Financial Accounting >> Accounts Payable >>
Menu
Document >> Change

To remove a block after posting, you must access the payment document (51XXXXXXXX)
through Accounts Payable and remove the block.

At the Change document: Initial screen, enter the document number and press enter.
Double click on the vendor line item (line item 1) to display the payment screen.

If this in an OTA Vendor, you will need to click on or hit enter when the Address screen
appears.
In the Pmnt block field, the R (Invoice verification) must be removed. To remove the block,
simply delete the R in the Pmnt block filed and click on

to save the document.

SD Documents Blocked for Billing

Use
This report replaces the former "Release Orders for Billing" report (RVAUFSPE). It provides a list of all
the sales documents that have been blocked for billing with information about what has caused the block.
The report has been changed because originally it could only display sales documents that had been
blocked at header level. Any sales documents that had been blocked at item level were not displayed
even though this information was also relevant.

Prerequisites
You can use this report immediately for new sales documents. The first time you use it for existing sales
documents, you must update the new status fields. You can do this by running the "Update Status Fields
for Overall Block in VBUP and VBUK" selection program (SDSPESTA).

If Release 46A is your first installation of the SAP system, you do not need to execute the
selection program.

Features

Selection
You can restrict the list to documents that have been blocked for a particular reason by entering the type
of block in the Billing block header field. Note that this only applies to the block in the document header.

For more information about the other selection criteria, see Selection Criteria for Restricting Lists.

Output
The report displays information about all SD documents that have been blocked for billing and the reason
for the block, for example, whether it was set at header or item level, or whether it is due to the user or
credit status. It also informs you of the delivery status of the sales document. You can go directly from the
list to an individual sales document by placing the cursor on the relevant document and choosing Edit
sales doc.

The new report is displayed in ABAP List Viewer format. For more information about the List Viewer,
see BC - ALV Grid Control in the Basis documentation.

Activities
To call up the report from the SAP Easy Access screen, choose SAP
standard menu  Logistics  Sales and Distribution  Sales  Information system Worklists  Sales
Documents Blocked for Billing.