Quantity and Value Credit Memos for Service based PO`s

[Former Member]

Dear Experts ,

I am seeking some expert assistance with a scenario for Service based PO`s involving credit memos.

Vendor with:

GR Based IV = X
Service based IV = X
AutoEvalGrSettlment = X

1.)
Purchase Order Item 10 - Header Service Qty 1 AU with Item Category = D and Account Assignment = F.
Service Item 10 - Car Wash Qty 5 EA - Gross Price 40 EUR - Total Value 200 EUR
Service Item 20 - Top up      Qty 5 EA - Gross Price 30 EUR - Total Value 150 EUR

2.)

Accept and Post a Service Entry Sheet

Service Item 10 - Car Wash Qty 5 EA - Gross Price 40 EUR - Total Value 200 EUR

Service Item 20 - Top up      Qty 5 EA - Gross Price 30 EUR - Total Value 150 EUR

3.)

Perform ERS - Invoice is posted automatically for the values as per GR

Service Item 10 - Car Wash Qty 5 EA - Gross Price 40 EUR - Total Value 200 EUR

Service Item 20 - Top up      Qty 5 EA - Gross Price 30 EUR - Total Value 150 EUR

After some time we receive an credit memo as follows. It is not possible to Edit/Revoke the posted SES at this point and

the only possibility I see is to post a credit memo as (4) below. However, I`m not sure how I may adjust the quantity

posted as a part of SES acceptance such that adjustments could be posted to the KBS transactions in the  FI

document posted at (2) above.

4.)

Perform Credit Memo

Service Item 10 - Car Wash Qty 1 EA - Gross Price 40 EUR - Total Value 40 EUR
Service Item 20 - Top up      Qty 1 EA - Gross Price 30 EUR - Total Value 40 EUR

According to my knowledge, I would have to follow the following procedure:

PO -> SES -> ERS IV -> Credit Memo for full qty and Value using transaction MIRO -> Revoke SES ->
New SES with updated QTY -> ERS IV with new QTY and Value.

Wheras for Material based PO`s I would have had the following option :

PO -> GR -> ERS IV -> Post a quantity adjustment using Movt. type 122 and an appropriate reason code ->
Next run of ERS posts a Credit Memo.

Is a similar process possible for Service based PO`s ? Is this a limitation of Service PO`s ? Any tips on how this requirement is handled at other clients would be much appreciated.

Regards, John.

[former_member183424 · Accepted solution]

Why you need to adjust the quantity ? Can you able to see the stock for the quantity anywhere ?

As it is a Service PO and Service entry sheet. So you do not need to think about the quantity also as there are no stock for this quantity.. You can well post the credit memo as you have discussed in option 4.

You have to just think about one thing, that is your GR was made with valuate or non-valuate.

If valuate, then you can post the credit memo, system will debit the amount from GR/IR account, then you have to clear the GR/IR account manually by running MR11.

If non-valuate, then you can post only credit memo, automatically system will post the debit amount to your expenses (G/L used in PO-Account assignment tab)

[Former Member · Accepted solution]

Hi Dibyendu ,

Thanks for your comments. We do not need to adjust the quantity but should`nt we adjust the postings to the expense account posted when the SES was accepted ? This is the part I`m not clear with. Is MR11 the only option ?

PO Account Assignment 'F' with Item Category 'D' | The scenario here is a Valuated GR.

GL A/C # 12345
Order #    67890

At SES Acceptance

A/C # 12345      KBS   350+
GR/IR Clrg. A/C WRX  350-

At Invoicing

Vendor Account  KBS 350-
GR/IR Clrg. A/C WRX 350+

Credit Memo for 1 Qty & 80 EUR

Vendor Account  KBS 80+
GR/IR Clrg. A/C WRX 80-

When the SES was accepted and posted there was a KBS posting to A/C # 12345  of 350+. How may we post an adjustment SES to have the following accounting document ?

A/C # 12345       KBS  80-
GR/IR Clrg. A/C WRX  80+

I assume this posting is required so the the accounts are balanced. Otherwise we essentially have the following situation :

A/C # 12345       KBS  350+
Vendor Account  KBS  270-
GR/IR Clrg. A/C WRX   80-

wheras we should have:

A/C # 12345     KBS  270+
Vendor Account  KBS  270-
GR/IR Clrg. A/C WRX    0

Is MR11 the only option at this stage ?

Regards, John

Message was edited by: Jerin Ipe John

[former_member183424 · Accepted solution]

Yes.. Your scenario is absolutely correct. You have to do the clearance from MR11 and the accounting entry will be exactly what you have posted..

You can test the same in your system..

May be you can post the adjust (MR11) from FI side.. But from MM side, MR11 is only the option .

[jagdeepsingh83]

I agree it is not possible to post negative quantity and nor you are able to change the SES that is already posted. Only  option are left with is post the credit MEMO. You are able to post new SES in positive quantity if required. I hope we are on the same page now.

[jagdeepsingh83]

I tested the scenario, You can do credit memo of partial quantity too. Then post the SES for quantity for which posted credit memo.

PO -> SES -> ERS IV -> Credit Memo for Partial qty and Partial Value using transaction MIRO -> Revoke SES ->
New SES with updated QTY -> ERS IV with new QTY and Value.

[Former Member]

Hi Jagdeep,

Thanks for your comments. In my system, even after a partial Credit Memo, it was not allowed to revoke an SES due to following error:

Deficit of PU IR quantity 2.000 EA

Message no. M7021

It was also not possible to post an SES with negative quantity due to error:

Negative quantities not allowed in service-based invoice verification

Message no. SE464

My Vendor is setup with:

GR Based IV = X
Service based IV = X
AutoEvalGrSettlment = X

Srv. Based IV  = X

PO Item is Valuated GR.

Regards, Jerin.

[former_member197616]

Hi,

Normally during the process of Services , when you post the SES and Accept it system will post the GR quantities and you will perform a Invoicing at MIRO for the SES and in your case it is ERS . But when ever there is a credit memo received , for these POs credit memo will be posted and system will be able to revoke the SES entered for change .

Here your issue is ERS . In the normal PO , when you post the 122 for the GR system feels a credit memo neccessary and when you run ERS it posts a credit memo . But the in the services case , you are posting a credit memo first ( which has to be auto ) and after that you are changing the SES .

Please refer to the below links .they are useful .

Regards