Explain What Is Credit 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.

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other sales orders, or distribute the items of one credit memo request to several billing documents, the assignment is no longer valid and the system will not process it.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.