Name: Creating Credit Memos in SAP Ariba Buying and Invoicing
Uploaded: 2024-9-30
Duration: 204 s
Description: See how members of the Accounts Payable department can create header level and line item credit memos. You will learn the process for entering credit memos manually into the system.

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<div><div><div><div><div><div><div><div>See how members of the Accounts Payable department can create header level and line item credit memos. You will learn the process for entering credit memos manually into the system. </div></div></div></div></div></div></div></div>

Creating Credit Memos in SAP Ariba Buying and Invoicing

Credit memos reduce the amount owed under the terms of an earlier invoice. When credit is due back to the buyer, the SAP Ariba Procurement solutions allow for the creation of credit memos. They can be created by the supplier in their SAP Business Network account. If the credit memo was sent to the customer in paper format, buyers can enter it directly in SAP Ariba Buying and Invoicing. This video demonstrates how members of the Accounts Payable Department can create header level and item level credit memos in their procurement application. In situations where the supplier gives the customer credit that is not associated to a specific purchase, or when the amount is not linked to specific items in a purchase, users can enter a header level credit memo. To do so, we start from the dashboard and choose Create > Credit Memo. This action takes us to the invoice creation page. It is important to notice that by default the number of the credit memo will start with INV, as the SAP Ariba system considers it an invoice with a negative value. The procedure for entering the credit memo is like that of an invoice. We have to choose a Type, which indicates what initial document this credit memo is linked to. It allows users to understand if the adjustment made via the credit memo is done to values in a PO or a contract, or neither. Typically, customers create credit memos in their site when they receive paper credit memos from suppliers and need to enter them for invoice reconciliation and payment. The information entered in the system has to match the paper credit memo exactly. So, the accounts payable department needs to make sure they enter the information as is. For example, the credit memo number and date will have to match the ones given by the supplier. A copy of the paper document can be attached online. As this is an example of a header-level credit memo, the line items section will only list a generic credit memo line. The value in the amount has to be negative, as well as the values entered for taxes, discounts, or charges. Submitting a header-level credit memo creates a header-level credit memo invoice reconciliation document and launches its approval flow. To create line item credit memos, we would have to start with an invoice. You can enter line-level credit memos from non-PO, PO-based and contract-based invoices with a Reconciling or Reconciled status. We search for and open the invoice for which we want to create the credit memo. We click Create Line Level Credit Memo to flip the invoice into a credit memo. The line level credit memo contains all of the line items in the original invoice and information related to the contract or purchase order it is associated to. Any changes done to the information available have to be done according to the credit memo data received from the supplier. When you modify quantities or prices, you can specify either a negative quantity or a negative price for a line item. You can also enter quantities or prices that exceed the quantities or prices on the original invoice. Submitting the credit memo creates a line-level credit memo invoice reconciliation document and launches its approval flow. When the line-level credit memo is approved, any purchase order or contract accumulators are updated with the line item credit amounts. This concludes our video on creating credit memos. Thank you for watching.