Handling Credit Memos and Reversals

Invoice documents, either invoices or credit memos, can be subsequently canceled if, for example, they were posted incorrectly.

When you reverse an invoice, the system automatically creates a credit memo based on the data in the invoice document. The system automatically determines the credit memo amount and quantity from the invoice. This avoids any variances between the invoice and the credit memo.

When you reverse an invoice, the account movements made when the invoice was posted cannot always be reversed. For example, there was sufficient stock coverage when you posted an invoice with a price variance for a material with moving average price (MAP). However, when you reverse the invoice there is insufficient stock coverage. In this case, the system posts the price difference in the credit memo to a price difference account. This occurs even though the price variance was debited to the stock account when you posted the invoice.

When you reverse an invoice, all items in the document are reversed. You can reverse part of an invoice only by manually entering a credit memo.

You cannot reverse a reversal document. You cannot reverse a balanced invoice or a balanced credit memo either.

When canceling invoices in Logistics Invoice Verification, the document lines in Financial Accounting are not automatically cleared. SAP recommends running this periodically (for example, daily in the background).