SAP Invoice Correction Request

Sometimes, the invoice already sent to the customer contains incorrect 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, We will use the scenario involving the marketing admin, the sales manager, and the accounting department. This tutorial is part of our SAP SD course.

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 the SAP invoice correction requests. We will assume that a previous order to cash process has been completed and we now have a billing document.

Create SAP Invoice Correction Document

You have the previous billing document. Now, let’s create SAP Invoice Correction Request.

• Run the VA01 transaction, select the sales document type (Invoice Correction Request), and put the necessary sales area.

• 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.

• Fill in the field with the billing document number.

• Click copy or press Enter button.

• 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 displayed upon you is almost identical to your normal 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 remove it by putting it blank.

• Let’s select the “Sales” tab. In this tab, we will fill out the “Order Reason” field as one of the mandatory requirements for the SAP invoice correction request document.

• Despite being identical to the 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; on the debit side, however, you may change the quantity or pricing. The net value will reflect the calculation between credit and debit items.

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.

• Change the amount.

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 the transaction VA02 and open the document number you have found in the previous step.

• 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.

• . 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.

• Either way, click the “Save” button.

Create Credit Memo

SAP Invoice Correction Request is an “order-related billing” document. The released document is eligible for 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 the 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 the document creation date. Press Enter.

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

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

• 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.

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

The account receivable line for the customer is coming from the net value of difference between credit and debit (first and second item) in 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