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Credit invoice example for organizations

hi I'm ramti Mahesh from info development in this presentation we'll look at the credit and reel announcement in ining agenda for today's presentation we'll first look at the need for the credit and reable announcement then we'll look at the solution overview on the solution detail we'll look at the master data setup needed the condition which should be satisfied before credit and rebuild can be done the process of crediting and rebuilding and the limitations finally we'll have a demo on this topic the need for credit and rebel are many situations when a invoice which is already printed or even posted need to be reverted back examples are given on the screen that could be many other scenarios why this would be needed for example whe the text on the invoice is not correct or the customer calls up and points s an error in the invoice maybe a tax ID of the customer is wrong in some cases the invoice was printed but never really came out of the printer I presume there is no standard way to handle this kind of uh situation what was reced was a easy way to handle this kind of exceptional situation when a create an invoice need to be reverted back and the invoicing process should start all over again let's look at the overview of this solution uh the credit and rebuild process provides a standard way to handle rebuilding process based on authorization set up for the user when a invoice which has been posted is selected for credit and reel what happens is the selected invoice is cancelled credit node is created and linked automatically to the original invoice and billable lines are created based on the invoice which is cancelled these billable lines can be further invoiced by the user let's look at the master data needed for this credit and reel process when invoice is selected and for credit and reel a credit node is created this replacement credit node has a special transaction type which has to be maintained in the inversing parameter by Source type in addition to this users can be authorized to initiate the credit and rebuild process and this is controlled by the authorizations box in the user profile when the checkbox allow change of invoicing data is enabled then the users can credit and reel invoices there are some conditions um before credit and rebuild process can start first the invoice should be posted if the invoice is in the status of composed or printed then these invoices cannot be initiated for credit and rebel The Source document for example a sales order should allow change if the sales order is already processed process delivered is done and sales order is closed or removed then it is no longer possible to do a credit and rebuild Financial periods of the original invoice should still be open this is because the credit note created close the original invoice goes to the same period the original invoice should should be fully open in finance if there has been any payment or credit node linked to the invoice then credit and rebel is no longer allowed on this invoice there are restrictions on some types of invoices and we can look at the full list of this restrictions in the latest slide a invoice which is already replaced earlier or which is a result of a replacement process can no longer be credited and rebuild of course finally user should be authorized for taking out or carrying out this process let's look at the credit and re process in the invoice session when the invoice is selected the credit and reable specific option or button is available when this option is chosen the selected invoice stateus is said cancelled a replacement credit node is created to financially close this selected invoice the replacement credit node uses the replacement credit node transaction type and series defined in the parameters a referen is created between the replacement credit node and the selected invoice the replacement credit node is linked to the original invoice in finance resulting in the balance of both the original invoice and the replacement credit node being zero the integration transactions of the original invoice areed so in fact the revenue and cost transactions are reversed in addition to that avilable lines are created based on the original invoice lines the created bable lines have status on hold allowing the user to change data if needed avable lines data can be changed based on user authorization setup in the user profile and when the these changes are carried out then the invoicing process can start again for this billable line when these kind of billable lines are invoiced again references created with the original invoice which was cancelled as well as the source packages like sales order contract or updated with the new invoice number let's look at some limitations of uh this credit and reel process um credit and rebel is not enabled for the following types of invoices in case of credit notes internal invoices if invoice is originating from based on another invoice for example interest invoice or a debit credit Noe self bu invoices are not included interc company settlement invoices Advance payment request tax Mone invoices are not included When a credit and rebel is attempted on this kind of invoices then the user is informed that the credit table is not possible for these kind of invoices so let's look at the demo now let's look at the demo for credit and reel first let's look at the master data setup need for credit and reel let's go to the inversing parameters in the invoicing parameters we can set up the transaction type to be used during the credit and rebuild process can see here for replacement credit node you can set up special transaction type and series for credit node transaction type this transaction type and series will be used when this when invoice is being credited and rebuilt the next setup uh involved is to authorize a user for credit and rebild process in the user profile your number number of attributes can be set up which will be used during invoicing and here there's authorization check box allow changes to inversing data when this checkbox is enabled uh users will be allowed to credit and rebel a posted invo let's now look at the credit and Ral process we have invo here which we want to credit on Rebel let's look at the invoice lines there are two sales order lines for this invoice and if you go to the tax details we see a tax rate of 10% with tax code of Net 10 let's assume we need to change this tax code so we select the invoice and credit and REO we see a posted batch create record and a second invoice created for the sales order selected invoice is cancelled and there is a new invoice the replacement credit no transaction type negative amounts this TR is posted let's look look at the related invoice for this credit note here we see the reference back to the original invoice and if you go to the open entry let's look at all the open entries and select the credit note which we just created we see the negative amounts here and the balance is zero that's because the CRE credit note is directly assigned to the oral inverse we do a credit and REO let's look at now the oral invoce and the balance of the viral invoice is zero as well if we go to the linked documents for this invoice you can see the credit node which was created with the credit and REO process so in fact the personal invoice is financially closed in open entries let's look at the integration transaction we see here a number of Revenue and cost of good so transaction um the revenue transaction for reversed and the cost of goods sold transactions or revers as well let's go to the billable line with which we can start the reild process can see the status is on hold and so we can change the text code let's change it to n 12 which gives a 12% tax let's confirm the billable line and create invo you can see the invers here the new invers number and the new tax rate of 12% and then inv in 360 we see three invoices now a new invoice with a change amounts change tax amount if you now look at the sales order Ino lines we can see the new invoice number linked to the salesorder invoice lines with the status replaced this concludes the demo about credit and reel in ining