Vendor Credit Memo in SAP S/4 HANA

Vendor Credit Memo

A credit memo is a commercial document issued by a supplier to the customer notifying the reduction of the amount that a customer owes to the seller. If it is a cash sale, it implies the amount of benefit that the supplier owes to the customer.

A vendor credit memo is a document issued by a supplier or vendor to a customer, typically in response to a return of goods, an adjustment in pricing, or a billing error. It serves as a notification to the customer that their account has been credited for a certain amount, usually in the form of a refund or a reduction in the amount owed.

Here's what typically includes in a vendor credit memo:

1. Vendor Information: Name, address, and contact information of the vendor.

2. Customer Information: Name, address, and contact information of the customer.

3. Credit Memo Number: A unique identifier for the credit memo for tracking purposes.

4. Date: The date when the credit memo is issued.

5. Reason for Credit: Explanation of why the credit is being issued, such as returned goods, pricing adjustment, or billing error.

6. Amount: The total amount being credited to the customer's account.

7. Reference: Any reference numbers or documents associated with the transaction, such as the original invoice number or purchase order number.

8. Terms and Conditions: Any relevant terms and conditions related to the credit memo.
   

The vendor credit memo is an important document for both the vendor and the customer as it helps to ensure accurate accounting and maintain transparency in financial transactions.

How to Post Credit Memo in SAP ?

Let consider the below example of Vendor who sells Raw material for 10,000 INR out of which 2,000 INR worth are damaged during transport.

Pre-requisite: To Define Goods Returned GL A/c ( T.Code FS00 ) 

Create Vendor Invoice of 10,000 ( T.Code FB60 )

Click on  simulate to check entry and then Post.

Create Vendor Credit memo of 2,000 INR ( T.Code FB65 ) 

Click on simulate and then post

Check Vendor line items (FBL1N)

To make Vendor payment of the balance ( T.Code F-53 )

Click on Process open items > Select both Invoice and Credit memo lines and Post.

Check Vendor line items

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