Credit Memos for Freight Orders
You can use a credit memo to get a credit from a carrier in a freight settlement process where you have overpaid or over accrued in financials for a transportation service. You use a freight order, freight booking, or a service order as a reference when you create a freight credit memo.
Note
For air freight bookings, you use a charge correction advice document (CCAD) to process changes in charges, including issuing a credit.
Prerequisites
Master data for charge management
You have set up a freight agreement in the
Charge Management and Service Product Catalogs
component. The system automatically calculates the transportation charges based on an agreement. For more information, see Charge Calculation.Types of credit memo and credit memo reason codes
In Customizing, you have defined a credit memo type that the system uses to automatically enter certain settings when you create a credit memo. You have also defined the reasons for why the credit memo is necessary. For more information, see Customizing for
Transportation Management
under
Settlement
Freight Settlement
Define Credit Memo Reason Codes and Types for Freight SDs
.Orders and bookings
The system contains one or more freight order, freight booking, or service order that has been invoiced by a freight settlement document.
Activities
You can create a credit memo from an individual freight order, freight booking, service order, or freight settlement document. You can access a credit memo from the freight settlement documents overview screen.
When you create a credit memo from a freight order, the system includes the information in all the associated freight settlement documents in the credit memo, and displays the amount that has already been invoiced.
When you create a credit memo from a freight settlement document, the system includes the information from the freight settlement document in the credit memo. The system takes the amount that is already invoiced from the freight settlement document.
When you use the automatic change process, the system uses the existing freight settlement document to create a credit memo. This enables the system process a large scale change to the freight document charges, for example, a change in the agreement or in the calculation sheet, or the addition or deletion of a charge line. For more information, see Automatic Change Management for Freight Settlements.
Example
The following table illustrates how the freight credit memo process works for an ocean freight booking:
Step in SAP TM | Amount in FSD / Freight Credit Memo (USD) | Step in SAP ERP | Comments |
|---|---|---|---|
Total freight cost in ocean freight booking | 2400 | None | None |
Create the freight settlement document and transfer this to SAP ERP. | 2400 | Purchase order (PO) created, for example, PO1 with line 10. Service entry sheet (SES) created, for example, SES 1. Linked to PO1/10 with amount USD 2400. | Regular freight settlement document process |
Update the booking to reflect the correction, for example, weight correction. New total freight cost in freight booking. | 2000 | None | None |
Create the freight credit memo and transfer this to SAP ERP. | -400 | SAP ERP posts a new amount of -400. PO, for example, PO2 with line 10, marked as returns item. SES created, for example, SES 2. Linked to PO2/10 with amount USD 400. | PO based on returns item created. |