Explain What and How To Configure Debit Memo

Billing
SAP Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on billing is available at every stage of order processing and delivery processing.

Debit Memo Request:-

Step 1: Sales Document Type

IMG > Sales and Distribution > Sales > Sales Documents >

Sales Document Header:

1. Sales Document Type:DR is the sales document type for Debit Memo Request. To create new sales order type, always copy as with reference to similar sales order. If possible use standard sales order.

2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.

3. Assign Sales Area To Sales Document Types:
A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these, else Sales Order creation will give error.
B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required Sales Area. This will minimize selection of Sales Order Type as per sales area.

Sales Document Item:

1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as from standard & maintain New.

2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category

Step 2:

IMG > Sales and Distribution > Billing >

1. Define Billing Types: L2 is standard Billing Type for Debit Memo. If possible use Standard Billing Type. In case if required to create new, copy as from standard & maintain New.

2. Define Number Range For Billing Documents: Ensure to maintain number range.

3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to Billing.

Note: Ensure that Copy Control settings are done

Sales Order to Billing (OR --> F1): VTFA

In what situation do we use a debit memo request and a debit memo?

Debit memo is used in below scenarios:

1) When you have charged the customer less then actual due to reason like selection of wrong scales or you have not checked the actual Market price.

2) When there is an over delivery and customer agrees to pay for it.

Debit memo request is an order type which is referred to create a debit memo there can be release procedure in-between depending on the business process.

Also note that our FI counter parts can create standalone DEBIT MEMOS.

There are a lot of scenarios we create debit memo request and debit memo against a customer. I am giving a couple of scenarios:

In repair processing the material has come back to our premises, we repaired the same and send it back to the customer. The charge for repair and the parts consumed has to be billed to the customer. We normally use resource related billing in such cases, through RRB we generate a debit memo request and followed by a debit memo.

We have sold one equipment (material) to a customer, it is having some issue, the customer wants an immediate replacement. We send the replacement immediately, expecting the customer to return back the faulty one. But the customer is not returning back the equipment. After many follow-up, we create a debit memo request and debit him with a debit memo.