Use

Credit and debit memos and memo requests are not included in the retroactive billing list. However, you may find it necessary in some cases to designate these documents as relevant for retroactive billing. You do this by entering the relevant order reason in the billing document.

Examples of order reasons include price changes, poor quality or ruined material. Depending on how the order reason you entered is customized, this billing document becomes relevant for retroactive billing.

Prerequisites

To make the credit and debit memos and memo requests relevant for retroactive billing, you need to assign a type to the order reason as follows:

You assign types to order reasons in Customizing for Sales and Distribution (choose  Sales Sales Documents Sales Document Header Define order reasons ).

Features

When you enter an order reason which has been assigned a type in Customizing, the billing document becomes relevant for retroactive billing as follows:

If you enter an order reason with type 2 in a credit or debit memo or memo request, the system will use this billing document in retroactive billing as a primary document.

The system will then calculate the retroactive billing amount for this billing document just as for a standard invoice.

"Poor quality" would be a typical order reason for this type, for example.

Example 1:

In this example, the customer was sent an invoice with a net value of $100. Because 3 pieces were of poor quality, the customer received a credit of $30.

This credit memo (no. 601) would normally not be included in the retroactive billing list. However, the order reason poor quality has been assigned type 2 in Customizing, which means that the credit memo is a primary document relevant for retroactive billing. Therefore, the system calculates the difference between the net value ($30) and today's net value ($27) and creates a debit memo of $3 on the basis of the credit memo no. 601.

Invoices are always primary documents. Therefore the system also calculates the difference between the net value of the invoice ($100) and the today's net value ($90) and creates credit memo no. 602 ($10) on the basis of the invoice.

The credit and debit memos created by the system both have the order reason price too high , which has been assigned type 1 in Customizing. Should there be a subsequent retroactive billing run, these billing documents will be relevant for retroactive billing as secondary documents.

If you enter an order reason with type 1 in a credit or debit memo or memo request, the system will use this billing document in retroactive billing as a secondary document.

"Price difference: price was too high" would be a typical order reason for this type, for example.

Example 2 :

This example continues the process of the previous example.

The credit and debit memos created by the system both have the order reason price too high , which has been assigned type 1 in Customizing. Therefore, they in turn, become relevant for retroactive billing, but as secondary documents.

As in the first example, the system calculates the difference between the net value of the invoice ($100) and today's net value ($85). It then takes this difference ($15) and subtracts the net value of the secondary document, credit memo 602 ($10) and creates credit memo no. 604 ($5) on the basis of the invoice.

The system carries out the same procedure for credit memo no. 601. It calculates the difference between the net value of the credit memo ($30) and today's net value ($25.50). It then takes this difference ($4.50) and subtracts the net value of the secondary document, debit memo no. 603 ($3) and creates credit memo no. 605 ($1.50) on the basis of credit memo no. 601.

Although the system does not take documents with other order reasons into account, it displays them in the list in another color.