Explaining the Process Steps and Business Roles of Credit Memo Processing for Service Management

In this lesson, we discuss the specific characteristics of the main documents used in scope item 4GG (i.e. the credit memo requests) and how they are integrated in the standard service management process in SAP S/4HANA Cloud Public Edition.

In SAP S/4HANA Cloud Public Edition, service, you can create a credit memo request (CMR) for the amount that is to be credited to your customer. The CMR document can be blocked for billing, pending its review. It is possible to set up an approval workflow for CMR documents in SAP S/4HANA Cloud Public Edition. Upon approval, the CMR becomes relevant for billing and appears on the billing due list. The periodic billing process creates a credit memo (based on the credit memo request) to be sent to your customer and posts a journal entry in SAP S/4HANA Cloud Public Edition, finance.

CMR documents can be created with reference to billing documents for services, expenses, and/or service parts. The sales document type Cre. Memo Req. f.Service (SCR) has been introduced for this purpose. Prices are copied from the billing document and are not redetermined for the CMR. The referenced billing documents are created on the basis of billing document requests (BDRs) that in turn have been created for billing-relevant service confirmation line items or service order line items.

In SAP S/4HANA Cloud Public Edition, the credit memo request line item copies the account assignment object from the preceding billing document line item and transfers this account assignment object to the follow-on document credit memo line item. As a result of this logic, the financial postings for the credit memo line item use the account assignment object of the service order line item.

The figure shows an example of a possible document flow for a credit memo request created with reference to a billing document that in turn was created on the basis of billing document requests for billing-relevant service confirmation line items.

This figure shows a possible document flow for a fixed price service order. The credit memo request is created with reference to a billing document that in turn was created on the basis of billing document requests for billing-relevant line items of the fixed price service order.

In the above table you can find an overview of all the standard business roles that are used in Credit Memo Processing for Service Management (4GG).

These roles can be used as a template to create your own business roles for your business users working with scope item Credit Memo Processing for Service Management (4GG).

The billing clerk creates the invoices that act as a starting event for the process covered by scope item 4GG and the billing clerk is also responsible for creating the actual credit memo's themselves.

The internal sales representative creates the credit memo request(s) with reference to the invoice(s) for which a credit memo might need to be created (based on approval/rejection).

The sales manager approves or rejects the credit memo requests that need approval.

The customer service manager analyzes the (updated) service transaction history. It is updated whenever a new credit memo request and/or credit memo is created.