Invoice Correction Request in SAP

1
INVOICE
CORRECTION
REQUEST IN SAP
Phone/Whatsapp: +1 (515) 309-7846 (USA)

Email: info@zarantech.com
Website: www.zarantech.com
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SAP Invoice Correction Request

Sometimes, the invoice that has already been sent to the customer contains wrong pricing
and even worse, incorrect quantity. Instead of canceling the billed document, it is suggested
to use the Invoice Correction approach. The major difference with other SAP complaint
processing documents is that with SAP Invoice Correction Request, the system will create
two line items which consist of a credit and a debit item. We will discuss it further as we see
the process.
For this tutorial, I am going to use the scenario which involves the marketing admin, the
sales manager, and the accounting department. This tutorial is part of our SAP SD course.
SAP Invoice Correction Request Business Process
General SAP Invoice Correction Request Processing Flow
The whole process began with the normal Sales Order – Delivery Order – Billing sequence
until the marketing admin received a complaint from the customer regarding the wrong
price or quantity. This issue should be addressed without having to cancel the billing
document.
As you may see in the picture, in the last step of the process, the system will generate a
Credit Memo (more on this will be explained in the billing process).
SAP Invoice Correction Request – Step by Step
Let’s provide detailed guidance for the processing of SAP invoice correction requests. We
will assume that a previous order to cash process has been completed and we now have a
billing document.
Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

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Create SAP Invoice Correction Document
You have the previous billing document. Now, let’s create SAP Invoice Correction Request.
1. Run the VA01 transaction, select the sales document type (Invoice Correction Request)
and put the necessary sales area.
Create SAP Invoice Correction Request
2. Press Enter button. You have to look up your client’s business process whether they need
a previous document to be referenced or it can be made independently. For this document, I
will make it mandatory to put the previously generated billing document, so a new pop-up
will show up.
3. Fill in the field with the billing document number.
4. Click copy or press Enter button.

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Input Billing Document as Reference
5. The copy control procedure will do magic by referencing all of the information taken out
from that billing document (partner function information, quantity, even price).
The Overview screen that is displayed upon you is almost identical with your regular sales
order creation process except the billing block is now automatically filled (which is set by
the configuration). Based on the role, only the authorized person will be able to release it.
With respect to the process flow, the marketing manager will release it by putting it blank.
Create SAP Invoice Correction Request – Overview Screen

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6. Let’s select the “Sales” tab. In this tab, we are going to fill out the “Order Reason” field as
one of mandatory requirement for SAP invoice correction request document.
Select One of the Pre-Defined Order Reason Based on the Situation
7. Despite of being identical with credit/debit memo request process, the screen is slightly
different in the item structure. SAP invoice correction request will automatically create two
line items for each material.
* First Line: Credit item
* Second Line: Debit item
Those line items carry the same value and quantity. In the credit item, the system will credit
the full value and you cannot change it; in the debit side however, you may change the
quantity or pricing. The net value will reflect the calculation between credit and debit item.

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Change Either Price or Quantity in The Second Line Item
Look at the Net Value: the Calculation is Coming from Line Item One Minus Line Item Two
You also can change the price. If that is the case, do the following:
Select the second line item.

Click the “conditions” button.

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Change Price by Going to Item’s Conditions

Change the amount.
Change Amount in Conditions Tab

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8. Now, we are ready to save the document. Just in case, check the incompletion log and
then click on the save button .
Release SAP Invoice Correction Request
Based on the segregation of duties profile, a marketing admin will not be authorized to
release SAP invoice correction requests. Based on our scenario, only the Sales Manager
can review the document and make a justification for whether or not this new document is
granted to be billed to the customer.
1. The Sales Manager may run the standard report to look up if there is a new complaint
document created today through transaction VA05N. In the selection screen, put the
necessary information to filter out the document specific to the Invoice Correction Request.
Click the Execute button .
Run VA05N and Fill the Necessary Fields

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Fields The List of Invoice Correction Requests will be Displayed

2. Run the transaction VA02 and open the document number you have found in the previous
step.
SAP Invoice Correction Request Overview Screen in Change Mode

3. The Sales Manager is authorized to release the document by putting a blank value in the
“Billing block” field if he agrees to release it.

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Release the Billing Block by Leaving It Blank

4. If the Sales Manager decides to reject the document, he may select an appropriate value
from the drop-down list of the ‘Reason for Rejection” field.
Select One of the Reason for Rejection

5. Either way click “Save” button

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Create Credit Memo
SAP Invoice Correction Request is an “order-related billing” document. The released

document is eligible for the creation of a billing document. For this tutorial, the authorized
person to create the billing is the Accounting Department. They will run the transaction
VF01 to create a credit memo.
Note that in the SAP standard system, the invoice correction request is characterized as a
credit memo request, thus whether the net value results in positive or negative, the system
will always generate a credit memo based on the standard copy control procedure.
If, for example, you want the system to create a debit memo for a negative amount of net
value and generate a credit memo for a positive amount of net value, you have to create
additional documents in the customizing and configure the copy control accordingly.
1. Type in SAP Invoice Correction Request document, select the “Billing Type” and put the
Billing Date as well. You can leave them blank and the system will copy them from
document creation date. Press Enter.
Run VF01 and Enter SAP Invoice Correction Request Number

2. Before you can save it, you might want to input text(s) for print-out purposes.

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Input Necessary Texts Before Saving
Example of Text

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3. Click the save button and voilà. You now have a credit memo invoice that basically
creates a new revenue item.
Find the Document Number

4. After the credit memo billing has been created, we can check the generated accounting
document. Run the transaction VF03. It will call your billing document automatically.

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Click “Accounting” Button after Entering Credit Memo Number in VF03
Double Click on the Accounting Document Number

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Accounting Entries for Credit Memo

The account receivable line for the customer is coming from the net value of the difference
between credit and debit (first and second item) in the SAP invoice correction request
(which is obviously copied to the billing process).
– If the remaining net value is negative, it will generate a debit posting key
– If the remaining net value is positive, it will generate a credit posting key

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Example of Positive Net Value
SAP Advanced Returns Management

SAP Advanced Returns Management. In today’s world, the company is expected to have a
reliable after-sales process which includes complaints processing, repair, and return
processing. There is an old phrase that is still relevant in the business world, “customer is
the king, and service wins the game.” Making new sales every now and then is good, but
retaining the current customer is also crucial.
Because the customer expects high-quality products, the return process is also expected as
a service process that will be handled transparently, and efficiently with an immediate
refund process.
We have learned that customer returns could be processed in SAP by creating separate
documents (return order, return delivery, return stock, credit memo, etc.). However, this is
not sufficient because we can lose track in regards with the follow-up documents. Also, if
we face a complex situation that involves a third-party supplier, the efficiency of the process
will become an issue.
SAP Advanced Returns Management integrates the whole process from the creation of a
return order to inspection management, followed by the creation of a credit memo. SAP

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Advance Returns Management has two types: customer and supplier returns. This tutorial
will only address the customer return process.
This tutorial assumes you have familiarity with SAP terminologies, especially with the Sales
and Distribution module. You should have a basic understanding of how to create an order-
to-cash process followed by complaint handling processing creation (credit memo/debit
memo/invoice correction request). This tutorial is part of our SAP SD course.
You also should make the prerequisite customizing in SAP Advanced Returns Management
via
1. IMG – Sales and Distribution – Sales – Advanced Return Management

2. IMG – Logistics General – Advance return Management
SAP Advanced Returns Management Features
What are the features of SAP Advance Returns Management? What makes it advanced
compared to its brother, the “regular” returns processing? Let’s have a look at the general
process flow first.
SAP Advanced Returns Management General Flow
The Return Order is the main entry point. The data entry will be integrated once you save
the Return Order document. The Delivery Order will be also created automatically.
The warehouse inspection will be done based on the value setting from the return order.
The logistics follow-up documents will be created automatically (goods receipt, goods
issue document, etc.).
Customer refunds will be processed faster through a credit memo (which you will define
at the return order creation).
We can monitor the whole customer return process via a single transaction code that
has statuses for each process plus the tree process of each item.

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SAP Advanced Returns Management Step by Step
In this section, I am going to explain how to create the whole SAP advanced returns order
process with a simple scenario. A customer wants to return the goods he already bought
because they don’t have more space for the remaining item. He decided to return the
material by himself to our premises (one of the sales counters). The sales representative
will be immediately advised to create a refund for this process.
Run the transaction VA01 and select the Advance Returns document type, along with its
sales area.
Select Correct Order Type, Then Fill in Sales Area

Click on the “Create with Reference button”, and input the billing document number, click the
“Copy” button.

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Select the Bill. Doc. Tab, fill in the Referenced Document, and Click Copy Afterward
In the Overview Screen, you will be redirected to the “Returns” tab, and let’s have a look at
the Return Control and item details. There are several fields that should be filled which will
determine the next actions.

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SAP Advance Return Document Overview
1. The return reason is a predefined selection list that you have set before. This
field is similar to the Order Reason field which we often encounter when working
with debit/credit memo request documents.
2. Follow-Up Activity contains a predefined selection list that will determine the
following document after you save the advance return document. Each selection
will carry a different document/scenario, so be aware of your choice. In my
example, I selected the “002 Immediate Move to Free Available Stock.”
3. The Material Received indicator indicates that the item material has been
received during return processing.
4. The refund Type field will specify what type of refund the customer receives. The
system provides two types, credit memo (monetary compensation) or
replacement material.
5. Inspection Code is used to specify the quality of the returned material which will
be determined during the inspection process.
6. Inspection Command Line is a free text, you can enter anything here.
As you can see above, these fields will be applied to the line item material. Run the
Incompletion Log for a good measure. Save the document afterward.

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Document is Complete
Save the document and you will have the SAP advance returns document.
A new Document is Generated

Now, let’s run the transaction MSR_TRC_C (yes, it’s that long). It is used to monitor the
return process and which documents have been created for each process.

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SAP Return Overview Screen
1. Input your name here.

2. Fill/select the Return Order Type (I’m using ZRE2).
3. The list of created documents will be displayed. Select/highlight the desired
document.
4. Click on the “Display Items” button.
5. Line items for the document will be displayed.
6. These are the return steps that are determined by the configuration we made prior
to the advance return order document.
Let’s see the comparison between the “Return Steps” versus the advanced return order we
made before.

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Return Steps on Return Overview Screen are Based on Return Order
1. The Warehouse Inspection is automatically created because I selected the

“Inspection Code” OK.
2. Logistical Follow-Up document (Posting to Unrestricted Use) is done
automatically based on the Follow-Up Activity, “Immediately move to…” in the
return order.
3. Return Delivery is automatically created based on the return order.
4. Goods Receipt is generated automatically because I ticked “Material Received”.
5. Credit Memo is generated automatically due to setting in refund control,
“Immediately.”
SAP Advanced Returns Management with Complex Scenario
Consider the previous section as a warm-up because in this section I am going to explain
another scenario that involves more steps and more manual documents created due to
different roles with different tasks. Here is an overview of a scenario with all the documents
related to this complex SAP advanced returns management process.
Document Type Person in Charge Comment
Adv. Return Order Manual step Sales Admin
Return Delivery Automatically Based on Return Order

generated
Posting Goods Receipt Manual step Warehouse staff Created when material arrives
in warehouse
Warehouse Inspection Manual step Quality Assurance “Ship to Vendor” setting in return
Staff order will trigger Return
Purchase
Return Purchase Order Automatically Created after warehouse ins
generated
Invoice Verification Manual step Accounting
Outbound Delivery to vendor Manual step Warehouse staff Based on setting in return order
and Posting Goods Issue (“After
receipt of Credit Memo from
Credit Memo Manual step Accounting

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Now, let’s see how this works in SAP ERP system. Create a Return Order based on the
reference billing document.
Create Return Order Overview Screen
1. Input the return reason. For this example, customer return five pieces because
they are damaged.
2. Since the item material was bought from an external vendor, the follow-up
activity would be to send it to the vendor.
3. We are going to provide payment as a refund for the customer.
4. We will give a credit memo to the customer after we receive a credit memo from
the vendor.
5. The Inspection Code is “Not OK”. It will be processed in our warehouse later on.
6. The following comment from inspection code.
7. The vendor that we will ship the material to.
Now run the transaction MSR_TRC_C to monitor the return process.

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SAP Returns Process Overview Screen
1. Enter the return order document.

2. Select the header and display the item.
3. The tree of all the processes. As you can see, the process stops at the delivery
order return creation.
Now, run the transaction VL02N and enter Storage Location (return Storage Location
obviously), pick quantity and do Post Goods Receipt.

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Returns Process Overview Screen

Let’s go back to the MSR_TRC_C transaction and look up the next process.
After the Material is Received, QA Staff Need to Inspect the Goods

Run the transaction MSR_INSPWH, enter your plant, and click the execute button.
Initial Screen for MSR_INSPWH. Enter Plant and Execute It.
Look below for each order. First, you should select the inspection code, enter your comment
there, enter the inspection date, and mention the person responsible for doing the
inspection. The “Logistical Follow-Up” is determined based on the prior return order setting.
Afterwards, click the “Save and Confirm” button.

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Entry the Necessary Fields as Pointed by the Numbers Above

Let’s go back to the transaction MSR_TRC_C and we can see the screen below. The system
automatically created a Returns Purchase Order.
The Following Returns Purchase Order is Triggered by Inspection Document

Let’s process the return purchase order in the transaction ME22N.
1. Select the correct combination for the purchasing area.

2. Enter the price for this material.
3. Input the RMA Supplier (same with vendor code).
4. Save the document.

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Purchase Order for Vendor Return

Go back to the transaction MSR_TRC_C. Next, we are going to perform goods issues to the
vendor.
Return Purchase Order Saved! Now, Do Goods Issue to Vendor

To create a posting of goods issue to the vendor which is based on the purchase order, run
the transaction VL10B and insert the shipping point and the purchase order number. Then,
execute it.

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Select the Shipping Point and the Purchase Order Number

Now, select the line item with our document and click the “Background” button.
Select the Line Item and Click on the Background Button

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ButtonGreen Light Means the Document is Successfully Processed

Return to the transaction MSR_TRC_C and you will see a new delivery order document is
created. Now, posting goods issue in the transaction VL02N.
Outbound Delivery Created
Entry Picking Quantity and Click Post Goods Issue Button

Now, in the MSR_TRC_C transaction, you can see the remaining step of the returns process
is a credit memo to the vendor.

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We are going to create the credit memo

After the material arrives at the vendor’s premises, we are going to post an incoming
payment with a credit memo document. This is a credit memo for the vendor and it is
different from the customer credit memo that we discussed in previous tutorials. Run the
transaction MIRO, select the Credit Memo transaction, and enter the amount for the credit
memo. Click the Save button.
Enter Document Date and Amount

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New Vendor Credit Memo has been Created

We are done our business with the vendor. Now, we return to our beloved customer because
we are going to give them a credit memo to reduce their account receivable after we
received the credit memo from the vendor (remember the setting from the return order?).
Last but not least, Credit Memo for Customer

Run the transaction VA01 and create a credit memo request by referencing the return order.

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Input Sales Area, Enter Referenced Document, and Click Copy

Release the billing block, fill out the Order Reason, and save the document.
Release Billing Block and Go to “Sales” Tab

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Enter Order Reason and Save the Document

Release the billing block, fill out the Order Reason, and save the document. Finally, run the
transaction VF01 and create a credit memo request document based on this return order.
Credit Memo for Customer

Go to the transaction MSR_TRC_C and check that all processing statuses are now
completed and all the lights are green.

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The Complex Process of SAP Advanced Returns Management is Now Finished
Common Questions for SAP Advanced Returns Management
Q: How to return material from an external vendor?

A: In the Follow-Up Activity field, you may use the “0005 – Ship to Vendor” during Return
Order creation. The return Purchase Order for that vendor will be created.
Q: What about plants? How can I make the scenario of a return to plant within a company?
A: Yes, this is also possible. Select the designated follow-up activity in the return order. Just
be aware that not all the subsequent documents will be created. Depending on the
configuration and business process, you need to monitor the process.
Q: I want my Quality Assurance (QA) team to do the inspection manually and I want it to
have a different code to determine any justification for the returned goods. How to achieve
it?
A: First, you have to define the inspection code and assign it to the profile. Then, to do the
inspection manually, just leave the “material received” indicator blank. You will need to run
the MSR_INSPWH transaction separately.

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Phone/Whatsapp: +1 (515) 309-7846 (USA)

SAP Invoice Correction Request

SAP Invoice Correction Request Business Process

General SAP Invoice Correction Request Processing Flow

SAP Invoice Correction Request – Step by Step

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Create SAP Invoice Correction Document

Create SAP Invoice Correction Request

3. Fill in the field with the billing document number.

4. Click copy or press Enter button.

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Input Billing Document as Reference

Create SAP Invoice Correction Request – Overview Screen

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Select One of the Pre-Defined Order Reason Based on the Situation

* First Line: Credit item

* Second Line: Debit item

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Change Either Price or Quantity in The Second Line Item

Select the second line item.

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Change Price by Going to Item’s Conditions

Change Amount in Conditions Tab

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Release SAP Invoice Correction Request

Run VA05N and Fill the Necessary Fields

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Fields The List of Invoice Correction Requests will be Displayed

SAP Invoice Correction Request Overview Screen in Change Mode

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Release the Billing Block by Leaving It Blank

Select One of the Reason for Rejection

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Create Credit Memo

SAP Invoice Correction Request is an “order-related billing” document. The released

Run VF01 and Enter SAP Invoice Correction Request Number

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Input Necessary Texts Before Saving

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Find the Document Number

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Click “Accounting” Button after Entering Credit Memo Number in VF03

Double Click on the Accounting Document Number

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Accounting Entries for Credit Memo

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Example of Positive Net Value

SAP Advanced Returns Management

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

1. IMG – Sales and Distribution – Sales – Advanced Return Management

SAP Advanced Returns Management Features

SAP Advanced Returns Management General Flow

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

SAP Advanced Returns Management Step by Step

Select Correct Order Type, Then Fill in Sales Area

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

SAP Advance Return Document Overview

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

A new Document is Generated

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: info@zarantech.com

SAP Return Overview Screen