P2P Module: Ariba P2P INVOICING Enter a Credit Memo P2P Module: Ariba P2P INVOICING Note: This content is subject to change. Please click on the link below for latest version http://eportal.sccgov.org/sites/proc/training/Pages/Ariba-P2P.aspx Inv Module 6 – Enter Credit Memo

Before You Begin, Review the Invoice Search for either the PO or the Invoice. If you search by PO, click the Invoices tab. Then, click the Invoice #. Click the Reference tab. Click the invoice reconciliation’s ID. Inv Module 6 – Enter Credit Memo

Review the Invoice Reconciliation For each line item, record the final reconciled amount. For tax line items, record the Tax Code. Inv Module 6 – Enter Credit Memo

Two Types of Credit Memo Regular Line-Item Credit Memo Credit applies to a specific quantity of a product or service on the invoice (for example, 2 returned items). Subsequent Credit Memo Credit is not quantity related. Credit is for price adjustment without goods return or partial credit for returned goods. Inv Module 6 – Enter Credit Memo

Start from Within an Invoice Line-Item Credit Memos start from within an invoice. Search for either the PO or the Invoice. If you search by PO, click the Invoices tab. Then, click the Invoice #. From the invoice, click Create Line-Item Credit Memo. Inv Module 6 – Enter Credit Memo

Enter the Regular credit Memo Enter the Supplier Credit Memo #. Note: All letters must be upper case. Select the Remit to Address from the original invoice if needed. Update the Header Charges to match the credit memo, if needed. If the charges on the credit memo do not align with the invoice reconciliation, stop entry and contact the supplier to send a corrected credit memo. Inv Module 6 – Enter Credit Memo

Enter the Regular credit Memo (Continued) Check the Invoice Summary Details to match with the credit memo before Submit. Click Update in each section to update, then check invoice summary Details to match the amount with paper CM. Update the Line Items to match the credit memo – including any tax codes. Delete any lines not included on the credit memo. If the charges on the credit memo do not align with the invoice reconciliation, stop entry and contact the supplier to send a corrected credit memo. Inv Module 6 – Enter Credit Memo

Two Types of Credit Memo Regular Line-Item Credit Memo Credit applies to a specific quantity of a product or service on the invoice (for example, two returned items) Subsequent Line-Item Credit Memo Credit is for price adjustment without goods return or partial credit for returned goods Inv Module 6 – Enter Credit Memo

Enter The Subsequent Credit Memo Line-Item Credit Memos start from within an invoice. Search for either the PO or the Invoice. If you search by PO, click the Invoices tab. Then, click the Invoice #. From the invoice, click Create Line-Item Credit Memo. Inv Module 6 – Enter Credit Memo

Enter the Subsequent credit Memo (Continued) Enter the Supplier Credit Memo #. Note: All letters must be upper case. Adjust tax and other surcharge accordingly. If CM is not quantity related, enter quantity as -1, then enter the credit amount in the price area; If CM is for partial credit related to returned goods, enter negative returned quantity, then enter the credit amount for each item. Inv Module 6 – Enter Credit Memo

All credit memos must be reviewed and approved via the reconciliation. Review the Credit Memo All credit memos must be reviewed and approved via the reconciliation. Click View the status of your request. Click the Reference tab. Click the Invoice Reconciliation ID. Inv Module 6 – Enter Credit Memo

Review the Credit Memo (CONTINUTED) Click Edit. Click Reference to open the reference documents. Click the Invoice tab and double check that the line items match the credit memo. Click the Payments tab and double check that the initial payment is scheduled or paid. Inv Module 6 – Enter Credit Memo

Approve the Credit Memo Click Approve to approve the credit memo if the line items match the invoice reconciliation. If not, click Reject. Double check the credit memo data. Click the Payments tab and double check that the initial payment is scheduled or paid. Inv Module 6 – Enter Credit Memo

Approve the Credit Memo (Continued) Click Submit to submit the credit memo. Then the Workflow shows CM is approved. Inv Module 6 – Enter Credit Memo

Approve / Reject The Credit Memo Approve the credit memo from the To Do portlet or the approval email for credit memo send through Ariba Network. The process is the same as manual CM approval. Inv Module 6 – Enter Credit Memo

Summary of Ariba Credit Memo Create Ariba Line-Item Credit Memo(CM) within an invoice, and the information on the invoice will be flipped to the CM. The difference between creating regular credit memo and subsequent credit memo is goods return & unit price. If it is goods return and full credit received on every item returned, only adjust the quantity and not the unit price. SAP will treat it as regular CM and GR/IR will be reversed. If it is partial credit for a returned but damaged item, adjust to the returned quantity and adjust price to unit partial credit. SAP will treat it as regular CM and GR/IR will be reversed. If it is price reduction and no goods return, set quantity of the line item to -1 and adjust the Unit Price to the credit amount. SAP will treat it as subsequent credit memo and the credit will be posted directly to expense account(s). Tax credit needs to be adjusted to the correct amount – taxable credit * tax rate. Inv Module 6 – Enter Credit Memo

System Demonstration In this demonstration, you will see how to Enter a line-item credit memo Enter a subsequent credit memo URL– https://sccgov-t.supplier.ariba.com/ad/register/SSOActions?type=full Inv Module 6 – Enter Credit Memo