Returns, Credit and Debit Memos

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Returns and memos card

• Goods coming back → return order (RE) with reference to the invoice, then returns delivery (LR) and goods receipt.
• Over-billed, goods kept → credit memo request (CR) → credit memo. Under-billed → debit memo request (DR) → debit memo.
• Mixed corrections on one invoice → invoice correction request. Invoice should not exist → cancel it.
• Always set a specific order reason; it drives approval and reporting.
• Billing block = approval control. Release in VA02 / V.23 or via workflow; reject with a reason for rejection.
• Standard returns goods receipt lands in non-valuated returns stock: no journal entry until transfer to valuated stock.
• Credit check: amount = returned or disputed quantity × price actually invoiced, plus matching tax.
• Evidence: document flow, material document, journal entry, customer line items, who released the block.
• Run negative tests: rejected request not billed; unauthorized release refused.