When the customer receives a delivery from you, they price the materials based on:

• Prices from the customer's purchasing department
• Differences between the delivery note and goods receipt
• Differences due to the quality of the material, for example
• Retroactive price adjustments

The customer uses materials and prices to prepare a credit advice that they send to you by Electronic Data Interchange (EDI). The system converts this advice into intermediate document (IDoc) GSVERF.

The system then determines the corresponding internal delivery, and from it the internal invoice, based on:

Once the system has determined the corresponding delivery and invoice, it compares items in the credit advice, in IDoc form, with items in the corresponding internal delivery and invoice.

The system compares the following condition values for each item:

• Net value
• Cash discount
• Surcharges/Discounts
• Value-added tax (VAT)

If the values in the credit advice match the values in your invoice, the system assigns the credit advice number as a reference to the open items in the accounting document.
If the system finds any differences in the values, it terminates processing of the IDoc and sends a mail to the employee responsible. The employee can then correct the problem manually, or inform the customer to send one of the following correction or retro-billing documents:

The system determines the invoices and the related deliveries for these documents in the same way as for a credit advice.

If the values in the customer credit memo request (quantity correction) match the values in your delivery, invoice, and the existing credit memo, the system automatically creates the corresponding credit memo request, then the credit memo. The system always enters "EDI" as the order reason, no matter what the reason is for creating a credit or debit memo request. It also copies the related credit advice number to the Purchase order number field in the purchase order section, and to the Assignment field in the accounting section.

Credit or debit memo requests based on return deliveries, are treated just as credit memo requests for quantity corrections, except that the system carries out pricing only for those materials that are returned. Also, instead of comparing each condition value, the system determines an overall difference per item and compares it to the overall correction value.

In the case of retro-billing, the system reprices all documents in the transaction before comparing the condition values of the items. It calculates the difference between the old and new prices in the delivery, invoice, and existing credit or debit memos, and compares it to the difference calculated by the customer in the credit or debit memo request. The difference calculated by the customer is copied to condition type EDI2, and the one that you calculate to condition type PDIF.If these values match, the system automatically creates a credit or debit memo request, then a credit or debit memo.

If these values do not match, the system sends a mail to the employee responsible, but creates the document anyway. If you do not want this, make the appropriate settings in Customizing for the sales document type.

The customer sends a payment advice note based on their credit advice. The credit advice number that they include with the payment advice note indicates whether there are several deliveries per credit advice number or only one:

• The customer sends payment for a number of deliveries. These deliveries are covered by one credit advice, the number of which is sent with the payment.
• The customer sends payment for a number of deliveries. There is, however, only one delivery per credit advice. In this case, the customer groups the advice numbers and assigns a collective number, such as the EDI sequential number or vendor posting number. Payment, then, is for the total of the credit advices represented by this collective number. To compare open items, you must refer to the individual credit advice numbers.