User

Guide Credit Memo Processing with reference to a Purchase Order

Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

Process description:

When you receive a credit note for goods for which you have entered a purchase order and carried
out goods receipt and invoice verification on SAP, you will need to process the credit note on SAP.

This User Guide explains how to process a credit note for items ordered, received and invoiced
where
there is a change in the price of the items to your advantage (ie no change in the quantity of
items to be paid for). This Guide also explains how to process a credit note for items ordered,
received
and invoiced where some items were sent back to the vendor (ie a change in the quantity of items
to be paid for).

Note: SAP always expects the invoice to be processed before the credit note can be entered.

Contents:

Section 1 of this document will take you through the detailed processes required to verify a
credit note.

Section 2.0 provides a quick reference guide to processing a credit note.

Section Contents

1.1 Accessing the Logistics Invoice Verification screen

1.2 Entering credit note data

1.3 Checking the vendor payee details

1.4 Verifying a Subsequent credit

1.5 Verifying a Credit memo

1.6 Simulating the posting of the credit note

1.7 Posting the credit note for payment

2.0 Quick reference guide to processing a credit memo

2.1 Verify a credit note for items ordered, received and invoiced where there is a change
in the price of the items to your advantage (ie no change in the quantity of items to
be paid for).

2.2 Verify a credit note for items ordered, received and invoiced where some items were
sent back to the vendor (ie a change in the quantity of items to be paid for)
Procedure:

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User
Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

1.1 Accessing the Logistics Invoice Verification screen:

To access the screen to enter a credit note, follow the menu path: Logistics> Materials
Management> Invoice Verification> Logistics Invoice Verification or use transaction code
MIRO.

1.2 Entering credit note data:

On the Invoice Verification screen, enter information as specified in the table below:

Field Name Description R/O/C User Action and Values Comments

Transaction Subsequent credit or Credit memo R Select and enter either the ‘Subsequent Select the ‘Subsequent
credit’ or ‘Credit memo’ transaction. credit’ transaction where
there is no change in the
quantity of items to be paid
for.
Select the ‘Credit memo’

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User
Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

transaction where there is a

change in the quantity of
items to be paid for.
Invoice date The date of the credit note R Enter the date printed on the credit note
Posting date The date you are entering the credit C This will default in as today’s date
note
Reference The credit note number R Enter the credit note number from the Entering the credit note
credit note here in the same format as it number in the same format
is on the document will make it easier if you
need to refer to/find it again
at a later date
Amount The total of the credit note R The total amount of the credit note
including tax.
Tax The tax amount O The tax portion of the credit note

Calculate tax Don’t put anything in here

Tax code Don’t put anything in here

Purchase The purchase order number R The purchase order number from when
order/schedulin you placed the order.
g agreement If the credit note refers to several
purchase orders, the several purchase
order numbers can be entered by
clicking on the ‘More allocation criteria’
yellow arrow.

Press ENTER

1.3 Checking the vendor payee details:

You will see the vendor number for the vendor that the purchase order was raised against and the
name and address of the vendor default into the screen:

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User
Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

If the credit note is from a different vendor to the vendor entered on the purchase order and the
original invoice was verified with this different vendor as an alternative payee, then enter the different
vendor on the credit note as an alternative payee on the details tab.

If you are entering a ‘Subsequent credit’, ie paying less for items with no change in the quantity of
items to be paid for, proceed to Section 1.4.

If you are entering a ‘Credit memo’, ie a change in the quantity of items to be paid for, proceed to
Section 1.5.

1.4 Verifying a Subsequent credit:

By following Sections 1.1, 1.2, and 1.3, details of the line items will have defaulted into the screen
from the original purchase order.

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Guide Credit Memo Processing with reference to a Purchase Order
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File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

Enter the net amount of the credit against the appropriate line items.

Note: a credit note cannot be for more than the amount already invoiced.

Select the lines that the credit refers to by clicking on the boxes to the left of the items so that they
are a darker shade of grey.

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Guide Credit Memo Processing with reference to a Purchase Order
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Proceed to Section 1.6 to simulate the posting of the Credit memo.

1.5 Verifying a Credit memo:

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Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

By following Sections 1.1, 1.2, and 1.3, details of the line items with their net prices will have
defaulted into the screen from the original purchase order. Each line will be selected, indicated by the
box to the left of each line being a darker grey.

Click on the amount to be altered and enter the net amount of the credit.
Click on the quantity to be altered and enter the quantity of the item on the credit note.

Note: a credit note cannot be for more than the amount or quantity already invoiced.

De-select the lines that the credit does not refer to.

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User
Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

Proceed to Section 1.6 to simulate the posting of the Credit memo.

1.6 Simulating the posting of the credit note:

Click on the ‘Simulate’ button to view the document you are about to post.

The ‘Simulate Document in GBP’ box shown below should appear.

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Guide Credit Memo Processing with reference to a Purchase Order
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In this screen check the following:

• Each of your line items should be against its ledger code, nothing should be assigned to G/L
account 91250.

• The Debit should equal the Credit, and the Balance at the bottom should be 0.00.

If the simulation is correct, proceed to Section 1.7 to post the credit note.

If the simulation is not correct, go back to the Invoice Verification screen by clicking on the ‘Back’
icon and make your corrections.

When simulating the posting of the credit note, if the warning message ‘Invoice document still
contains messages (see error log) appears, see Section 1.8

1.7 Posting the credit note for payment:

Click on the save button to post the credit note for payment.

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User
Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

This takes you back to the Invoice Verification screen ready for the next invoice/credit note. The
document number is given at the bottom of the screen. Every time SAP carries a function it creates a
unique document number within a range. The number range for invoice/credit note verification starts
with 51……..

Use the rubber stamp on the invoice and write in the document number SAP produces in the box
marked ‘Document no’ and obtain the appropriate signature to authorize the credit note.

Send the verified and authorized credit note to the payments office

1.8 Processing error messages:

When simulating the posting of a credit note (Section 1.6), if the warning message,

appears instead of the simulate screen, follow the path: Goto> Messages. Note the Verification
log Message text, ‘Enter’ to return to the Invoice Verification screen and make the appropriate
change to the verification entry.

2.0 Quick reference guide to processing a credit memo

2.1 Verify a credit note for items ordered, received and invoiced but where there was a
change in the price of the items to your advantage (ie no change in the quantity of
items to be paid for).

Path: - Logistics>Materials Management>Invoice Verification>Logistics Invoice

Verification>Document Entry>Enter invoice.

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User
Guide Credit Memo Processing with reference to a Purchase Order
Title:

File Name: 3895750.doc Solution/Release: R/3 4.6B

Responsibility: MM Team (DFS) Status: Complete

(Transaction code: - MIRO)

In the Transaction field, select ‘Subsequent credit’.

Enter the date on the credit note in the ‘Invoice date’ field, the credit note number in the Reference
field, the Amount, the Tax amount and the order number.

Enter.

Select the line to which the credit refers and enter the net amount of the credit.

Simulate the ‘posting’ of the document. This should balance to 0.00.

Save the verification

Note the document number on the invoice ready for the payments office

2.2 Verify a credit note for items ordered, received and invoiced but where some items
were sent back to the vendor (ie a change in the quantity of items to be paid for)

Path: - Logistics>Materials Management>Invoice Verification>Logistics Invoice

Verification>Document Entry>Enter invoice.

‘Transaction code: - MIRO’

In the Transaction field, select ‘Credit memo’.

Enter the date on the credit note in the ‘Invoice date’ field, the credit note number in the Reference
field, the Amount, the Tax amount and the order number.

Enter.

Click on to the amount to be altered and enter the net amount of the credit. Click on to the quantity to
be altered and enter the quantity of the item of the credit.
De-select the lines that the credit does not refer to.

Simulate the ‘posting’ of the document. This should balance to 0.00.

Save the verification

Note the document number on the invoice ready for the payments office

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