Invoice Correction and Billing Request Definition:
- Invoice Correction
- Credit Memo or Debit Memo.
- Correcting Invoice Amount without changing the Original Invoice.
- Collecting all Adjustments to the Original Invoice.
- Billing Request
- Document for Invoice Correction.
- Collecting all Adjustments to the Original the Level:
- Complete Invoice
- Particular Invoice Item
- Particular Billable Item in the Invoice
- Billing Request Release triggers Billable Item Creation for Adjustment Next Invoice.
The invoice correction process enables the creation of credit or debit memos to correct the amount already invoiced to a customer without changing the original invoice. The invoice correction collects all adjustments to one invoicing document.
The creation of a credit memo or debit memo generates a billing request for the correction amount, so that the correction is included in the next billing run. The combination of original invoicing document and credit memo or debit memo determines the effective amount in the next invoice to the customer.
The billing request is the document to control the invoice correction processing. Once the billing request is released, the creation of a billable item for adjustment in the next invoice is triggered.
The BIT created by billing request have the source transaction type CRDIT or DEBIT.
The BIT created by billing request have the source transaction ID as billing request number.
The BIT of one billing request are billed together, because they have the same source transaction ID.
The business scenario for invoice correction processing could look like this:
- A customer complains about the bad quality of a particular service within an invoice.
- A reversal of the whole invoice and creation of a new one may be unnecessarily complex, stresses the system with increased data and the customer with communications.
- A credit memo request in this case is the more lightweight solution. Just tell the system to grant a credit in the amount of- and with a reference to the particular service.
- This credited amount is taken into the next usual invoice, so that the total is reduced by the cost of the service the customer complained about.
The created credit/debit memo request can be processed following the four-eyes principle by a user who possesses appropriate authorization provided in the business catalog.
A request in the status For Checking can be either released or rejected. The later status can then be processed for checking repeatedly.
A request that has been discarded can't be processed again and the rejection is final.
Simulate release is a technical check if the corresponding billable items can be created.
There are different levels that an invoice correction can be assigned: as an overall amount on invoice level, assigned to a particular invoice item, or on single billable item level.
The correction amount can be either entered as an absolute amount or as a percentage.
The combination of all three levels in one billing request for correction is possible.
It's possible to give either a fixed credit to the invoice or to calculate a percentage of the invoice amount as a credit amount.
It's possible to give either a fixed credit or debit to the invoice or to calculate a percentage of the invoice item amount as a credit or debit amount.
It's possible to give either a fixed credit to the invoice or to calculate a percentage of the billed item price as a credit amount.