Configuration setting for Debit Memo and

Credit Memo
1 Creating Sales Document Types
Defining the Sales Document Type
Use
The sales document type determines how the system processes the sales document.
For example, depending on the sales document type, the system determines which screens to display and
which data to ask you for. The sales document types used for this business scenario are sales orders.

Prerequisites
Set-up Sales Area

Procedure
Menupath: SPRO - Sales and Distribution - Sales - Sales Documents - Sales Document Header - Define Sales
Documents Types

Transaction Code: VOV8

Activities
Create the Sales Document Types ZDR (Copy of DR - Debit Memo Request) & ZCR (Copy of CR - Credit
Memo Request)

Accept all associated copy controls

Number Range as applicable, and

Make the following settings:

Field name

ZDR

Description

Debit Memo Request

Number Range

Maintain appropriate data

Incompletion Procedure

Maintain as standard / modify as requirement

Billing Section - Order-Rel Bill Type

ZDR

Finally, save your entries.

2. Assigning Pricing Procedure to Sales Document Types

Procedure
Menupath - SPRO - Sales and Distribution - Basic Functions - Pricing - Pricing control - Define and Assign
Pricing Procedures

Activities

Double-choose Assign document pricing procedures to order types.

We have maintained document pricing procedures to order types as 'A', which is available in standard.

3. Creating/Assigning Sales Document Item Categories

3.1. Defining Item Categories
Use
Item categories are used to control how sales document items are processed. This includes determining an
item's relevance to pricing, costing, and billing.

Prerequisites
The Sales Order Types have been created.

Procedure
Menupath - SPRO - Sales and Distribution - Sales - Sales Documents - Sales Document Item - Define Item
Categories

Transaction Code: VOV7

Use Standard Item category as provided by SAP (L2W & G2W)

3.2 Defining Item Category Assignment

Use
In this menu option, you can specify which item categories the system proposes during document processing
for each sales document type and item category group. At the same time, you can specify additional item
categories with which the system default can be overwritten. There is a maximum of three possible alternative
item categories.

Procedure
Menupath - IMG path - Sales and Distribution - Sales - Sales Documents - Sales Document Item - Assign Item
Categories

Transaction Code: VOV4

Activities
Assign item categories as shown in the table below:
Sales Document Type

Item Category Group

Default Item Category

ZDR

NORM

L2W

ZDR

LEIS

L2W

ZCR

NORM

G2W

ZCR

LEIS

G2W

Normally it is defaulted, but only required to be checked to ensure the same.

Save your entries.

4. Creating Billing Document Types

4.1. Defining the Billing Document Type
Use
In this menu option you define your Billing Type that represents the different business transactions in billing.

Prerequisites

Set-up Sales Area.

Sales Document Type Created

Procedure
Menupath: SPRO - Sales and Distribution - Billing - Billing Documents - Define Billing Types

Transaction Code: VOFA

Activities

Create the Billing Document Types ZDR (copy of DR - Debit Memo) & ZCR (copy of Credit Memo)

Accept all associated copy controls

Number Range as applicable, and

Make the necessary changes in settings if required.

Finally, Save your entries.

4.2. Copying Control for Billing Documents

Use
You can use requirements in copy control to specify how a sales document should be is to be billed as far as
requirements are concerned.

Procedure
Menupath: SPRO - Sales and Distribution - Billing - Billing Documents - Maintain Copying Control for Billing
Documents

Transaction Code: VTFA

Activities:

Double-choose on Copying control: Sales document to billing document, if you are using the ordinary
IMG path. Otherwise use the transaction code VTFA to access the functionality directly.

Define copy controls for source sales document ZDR to target billing document ZDR (copy of DR to
DR) & ZCR to ZCR (copy of CR to CR)

Copy all settings

Save
The configuration for ZCR (Credit Memo) can be maintain similar to that of ZDR, as mention above

Explain What Is Credit Memo

What is the difference between credit memo request and credit note and can we
see the credit note in the system?
Credit memo request will be created when you have to pay to the customer. (excess
bill or damages or change in the price).
Credit memo request is a Sales document type (VA01), based on this you will create
credit memo (VF01).
While creating the credit memo you will get a block which will be removed by an
authorised person set.
The credit memo can be seen with transaction VF03 and credit memo request with
VA03.

Credit memo request is a sales document used in complaints processing to request a

credit memo for a customer. If the price calculated for the customer is too high, for
example, because the wrong scale prices were used or a discount was forgotten, you
can create a credit memo request. The credit memo request is blocked for further
processing so that it can be checked. If the request is approved, you can remove the
block. The system uses the credit memo request to create a credit memo.
You can use credit memos in Sales and Distribution (SD) for assigning credit memo
requests to the open invoices and in Financial Accounting (FI) for assigning credit
memos and payments to the open invoices and carry out clearing with them. If you
use both Financial Accounting (FI) and Sales and Distribution (SD), there is a 1:1
relationship between the credit memo request and the credit memo item posted in
Financial Accounting (FI). As soon as you bill the credit memo request together with
other sales orders, or distribute the items of one credit memo request to several billing
documents, the assignment is no longer valid and the system will not process it.
For credit memos, credit memo requests, and payments, you have the following
assignment options:
Assignment to a single invoice
Assignment of a partial amount to an invoice
Assignment to several invoices
When you post credit memos, the payment programmed processes them
automatically. If the credit memo is specifically related to a particular open invoice
item, the payment program automatically attempts to offset the credit memo against
the open item. If it is not possible to completely offset the credit memo against an
invoice, you can post a debit memo to the vendor, who is to reimburse the amount.
Then you can apply a multilevel dunning program.
Credit Memo Based On Return Delivery
I have sales return scenario where I want to make credit memo based on return
delivery.
What are the steps and settings for copy control for creating credit memo in
VF01 with return delivery Vl01n
Credit memo in Return always refers to the Return order NOT to the Return delivery.

So create the Credit memo with reference to the Return order, there will be no error,
but before that ensure that you have released the block from the Return order.
First copy billing type from G2 (T-code VOFA) and that copied billing
Type maintain in sales document type (T-code VOV8) in for delivery related billing.