Credit Memos
Use
In the SAP System a credit memo reverses an invoice entry. Just as the system expects a goods receipt to precede or follow an invoice, it expects a credit memo when you cancel a goods receipt. The credit memo is settled using the GR/IR clearing account.
Features
The invoice reversal is a special form of credit memo: The system automatically determines the credit memo amount and quantity from the invoice to avoid differences between the invoice and credit memo. When you cancel an invoice, the account movements follow the same rules as credit memo postings. This means that an invoice cancellation does not necessarily reverse the postings made when the invoice was posted.
The postings that take place when you post a credit memo depend on the goods receipts and invoices that have already been posted. The following applies:
When determining the account postings, the system takes into account the following:
Credit memo amount
Credit memo quantity
Clearing value
Goods receipt value
Invoice quantity
Goods receipt quantity
See AlsoJournal Entries of Credit Note
Invoice Quantity Greater Than Goods Receipt Quantity
If the invoice quantity is greater than the goods receipt quantity, the credit memo quantity is divided into the quantity that is covered by the excess invoice quantity and the remaining credit memo quantity .
In the case of the quantity that is covered by the excess invoice quantity, the following value is calculated:
Quantity x (clearing value - GR value) : (IR quantity - GR quantity)
The following value is calculated for the remaining credit memo quantity:
Quantity x GR value : GR quantity
The total of these values is posted to the GR/IR clearing account.
If the IR quantity does not exceed the GR quantity, the following value is calculated for the credit memo quantity:
Quantity x GR value : GR quantity
This value is posted to the GR/IR clearing account.
The credit memo amount is posted to the vendor account.
If the credit memo amount varies from the GR/IR posting, the difference is posted to the stock account or a price difference account, depending on the price control defined for the material.
See also:
