E NTER A C REDIT M EMO

P2P Module: Ariba P2P INVOICING

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INV MODULE 6 – ENTER CREDIT MEMO 1

 B EFORE Y OU B EGIN ,
R EVIEW THE I NVOICE
Search for either the PO or the Invoice.

If you search by PO,

click the Invoices
tab.

Then, click the

Invoice #.

Click the Reference

tab.

Click the invoice

reconciliation’s ID.

INV MODULE 6 – ENTER CREDIT MEMO

 R EVIEW THE I NVOICE
R ECONCILIATION

For each line item, For tax line items,

record the final record the Tax
reconciled amount. Code.

INV MODULE 6 – ENTER CREDIT MEMO

 T WO T YPES OF C REDIT
M EMO

1. Regular Line-Item Credit Memo

Credit applies to a specific quantity of a product or service
on the invoice (for example, 2 returned items).

2. Subsequent Credit Memo

Credit is not quantity related. Credit is for price adjustment
without goods return or partial credit for returned goods.

INV MODULE 6 – ENTER CREDIT MEMO

 S TART FROM W ITHIN AN
I NVOICE
Search for either the PO or the Invoice.

Line-Item Credit
Memos start
from within an
invoice.

If you search by PO,

click the Invoices
tab.

Then, click the

Invoice #.

From the invoice,

click Create Line-
Item Credit Memo.

INV MODULE 6 – ENTER CREDIT MEMO

 E NTER THE R EGULAR
CREDIT M EMO

Enter the Supplier

Credit Memo #.
Note: All letters must be
upper case.
Select the Remit to
Address from the
original invoice if
needed.

Update the Header

Charges to match the
credit memo, if needed.

If the charges on the

credit memo do not
align with the invoice
reconciliation, stop entry
and contact the supplier
to send a corrected
credit memo.

INV MODULE 6 – ENTER CREDIT MEMO

 E NTER THE R EGULAR
CREDIT M EMO (C ONTINUED )
Check the Invoice
Summary Details to
match with the credit
memo before Submit.
Click Update in each
section to update, then
check invoice summary
Details to match the
amount with paper CM.

• Update the Line

Items to match the
credit memo –
including any tax
codes.
• Delete any lines not
included on the credit
memo.

If the charges on the

credit memo do not
align with the invoice
reconciliation, stop entry
and contact the supplier
to send a corrected
credit memo.
INV MODULE 6 – ENTER CREDIT MEMO
 T WO T YPES OF C REDIT
M EMO

1. Regular Line-Item Credit Memo

Credit applies to a specific quantity of a product or service
on the invoice (for example, two returned items)

2. Subsequent Line-Item Credit Memo

Credit is for price adjustment without goods return or
partial credit for returned goods

INV MODULE 6 – ENTER CREDIT MEMO

 E NTER T HE S UBSEQUENT
C REDIT M EMO
Search for either the PO or the Invoice.

Line-Item Credit
Memos start
from within an
invoice.

If you search by PO,

click the Invoices
tab.

Then, click the

Invoice #.

From the invoice,

click Create Line-
Item Credit Memo.

INV MODULE 6 – ENTER CREDIT MEMO

 E NTER THE S UBSEQUENT
CREDIT M EMO (C ONTINUED )

Enter the Supplier

Credit Memo #.
Note: All letters must be
upper case.

Adjust tax and other

surcharge accordingly.

If CM is not quantity
related, enter quantity
as -1, then enter the
credit amount in the
price area;
If CM is for partial credit
related to returned
goods, enter negative
returned quantity, then
enter the credit amount
for each item.

INV MODULE 6 – ENTER CREDIT MEMO

 R EVIEW THE C REDIT
M EMO
All credit memos must be reviewed and approved via the reconciliation.

Click View the status

of your request.

Click the Reference

tab.

Click the Invoice

Reconciliation ID.

INV MODULE 6 – ENTER CREDIT MEMO

 R EVIEW THE C REDIT
M EMO (CONTINUTED)

Click Edit.

Click Reference to
open the reference
documents.

Click the Invoice tab

and double check that
the line items match the
credit memo.
Click the Payments tab
and double check that
the initial payment is
scheduled or paid.
INV MODULE 6 – ENTER CREDIT MEMO
 A PPROVE THE C REDIT
M EMO

Click Approve to
approve the credit
memo if the line items
match the invoice
reconciliation.

If not, click Reject.

Double check the

credit memo data.

Click the Payments tab and

double check that the initial
payment is scheduled or paid.
INV MODULE 6 – ENTER CREDIT MEMO
 A PPROVE THE C REDIT
M EMO (C ONTINUED )
Click Submit to
submit the credit
memo.

Then the Workflow

shows CM is
approved.
INV MODULE 6 – ENTER CREDIT MEMO
 A PPROVE / R EJECT T HE
C REDIT M EMO

Approve the credit

memo from the To Do
portlet or the approval
email for credit memo
send through Ariba
Network. The process
is the same as
manual CM approval.

INV MODULE 6 – ENTER CREDIT MEMO

 S UMMARY OF A RIBA
C REDIT M EMO
• Create Ariba Line-Item Credit Memo(CM) within an invoice, and the information on the
invoice will be flipped to the CM.

• The difference between creating regular credit memo and subsequent credit memo is
goods return & unit price.

• If it is goods return and full credit received on every item returned, only adjust the
quantity and not the unit price. SAP will treat it as regular CM and GR/IR will be
reversed.
• If it is partial credit for a returned but damaged item, adjust to the returned quantity
and adjust price to unit partial credit. SAP will treat it as regular CM and GR/IR will be
reversed.
• If it is price reduction and no goods return, set quantity of the line item to -1 and
adjust the Unit Price to the credit amount. SAP will treat it as subsequent credit memo
and the credit will be posted directly to expense account(s).

• Tax credit needs to be adjusted to the correct amount – taxable credit * tax rate.

INV MODULE 6 – ENTER CREDIT MEMO

 S YSTEM D EMONSTRATION

In this demonstration, you will see how to

1. Enter a line-item credit memo

2. Enter a subsequent credit memo

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