SAP SD - Credit Memo Request Authorization

Credit Memo and Credit Memo Request

Credit Memo is a billing document which credits the customer's account i.e. decreases customer's receivables.

A credit memo may be required when for example excess price has been charged to the customer because of a discount not included in the pricing or scaling of prices etc.

If the business requires, any such credit to be first approved by the assigned employee the credit memo may be made to refer to a credit memo request which is a sales document containing a default billing block.

The approving official/person reviews the credit memo request and accordingly removes the billing block(approval) or enters the rejection reason(rejection) in the credit memo request.

After approval credit memo can be generated and processed like any other billing document.

Work-flow for approval process Credit memo requests are normally required

to be approved by authorized personnel. The approving authority may also be

given,not directly to the employee, but to some position or role in the organization for example a billing specialist etc.

Levels of approvals may be required according to the values.

Business work-flow helps in automating this process.

Objects and Templates The linkage between ERP and work-flow is created using object

technology.

The business object for credit memo request is BUS 2094.

To this object standard work-flow templates are assigned ( WS 20000009 and WS 20000019)

These templates incorporate standard logic for credit memo request authorizations.

Once the linkage between object and template is activated update / creation of a credit memo request will automatically start the template(triggering event)

Work-flow container contains data required such as limits,reference currency,terminating events etc.

Release credit memo request and Reject credit memo request terminate the template(Terminating events).

Standard Work Flow Two limits are specified Lower NetValue_Limit_1 and Upper

NetValue_Limit_2.

A reference currency is maintained to which the net values are converted if they are in any other currency so as to maintain uniformity in cross-company code processing.

If the net value of the credit memo request is lower than lower limit then credit memo request will be released automatically.

If the net value is between the lower limit and the upper limit then the system automatically informs (via mail in the integrated inbox acessed by going to SAP business flow) the responsible employee. He can either approve or reject the request.

If the net value exceeds the upper limit the system will then inform another person(who has been assigned).This means the authority is transferred to other employee with respect to increase in the value.

Customizing steps Editing Organizational plan :

IMG->SAP Netweaver->Application Server->Business Managment->SAP Business Workflow->Edit organizational plan

Consists various organizational units and their relationhsips as described in organizational unit,job,position,user,person etc.

Activating Linkage :

IMG->SAP Netweaver->Application Server->Business Managment->SAP Business Workflow->Perform task specific customizing->Sales and distribution ® Sales ® Activate event linking).

This activates the event-receiver linkage.Once inside the above path choose WS20000009 – BUS2049 and Click on detail view to activate the linkage

Customizing steps Once inside the above path choose WS20000009 – BUS2049 and Click on

detail view to activate the linkage.

Filling Container Data – Select WS20000009 and click on 'object'.Go to container tab and enter limits and reference currency

Assigning agents – Choose Work Flow Builder,Go to the nodes of respective limit check nodes. Double click for detail and go for assignment of agent(sales org,user,position etc).