Debit Memo Processing

1. Debit Memo Processing SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • The debit memo process is used for applying a debit to a customer account once a determination has been made that a customer has been undercharged as a result of a pricing or sales tax rate error. • Benefits • System integrated debit memo processing • Key Process Steps • Create debit memo request • Remove billing block (review debit memo request) • Billing • Excise Invoice

3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Sales Administrator • Accounts Receivable Manager • Billing Administrator • Excise Clerk

4. Detailed Process Description • Debit Memo Processing • A debit memo request is created with the amount to be debited, and placed on a billing block for review. It must then be released to become billing relevant, and appear on the billing due list. Periodic billing process creates a debit memo to be sent to the customer, post the excise JV to adjust the excise invoice with reference to debit memo, and posts an accounting document.

5. Process Flow Diagram Debit Memo Processing：Manufactory Event Customer to receive debit for incorrect charges Customer Debit Memo Sales Administrator Sales Order Entry Billing Administrator Remove Billing Block Billing Excise Clerk Excise Adjustment posting Accounts Receivable Manager Accounts Receivable (157) (Optional) Sales: Period End Closing Operations (203) AR = Accounts Receivable

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision