FREQUENTLY ASKED QUESTIONS: DEBIT MEMO

 
Contents
 
1. What is a Debit Memo Invoice?
 
2. When to create a Debit Memo?
 
3. Is Debit Memo functionality supported in 10.7 and 11.0?
 
4. How does Create Debit Memo from RTS Functionality Work?
 
5. What setup is required to create a Debit Memo?
 
6. Under what Conditions a Debit Memo can be created?
 
7. What to do if Debit Memo is not created after doing an RTS transaction?
 
8. Is Debit Memo not getting created when Inspection is involved? 
 
 
Questions & Answers
 
 
Q1. What is a Debit Memo Invoice?
 
Negative amount invoice which is created and sent to a supplier to notify the
Supplier of a credit you are recording.
 
Q2. When to create a Debit Memo?
 
To correct over billing errors, we create a Debit Memo by doing a Return To Supplier
transaction for the extra quantity that got invoiced.
 
Q3. Is Debit Memo functionality supported in 10.7 and 11.0?
 
No, Debit Memo functionality is supported only in Release 11i.
 
Q4. How does Create Debit Memo from RTS Functionality Work?
 
Steps to Create a Debit Memo via RTS.
 
a. Create a PO with supplier and supplier site.
b. Receive the goods using Enter Receipts Form.
c. Create an Invoice. If Pay on Receipt is used to create then Invoice then set “Pay on”
as Receipt and “Invoice Summary Level” as Receipt in Supplier sites
window under purchasing tab.
 d. Do a Return To Supplier (RTS) transaction for some of the goods using Returns
form.
e. Make sure the check Box 'Create Debit Memo' is checked in the Return line while
doing the RTS transaction.
f. This will automatically create a Debit Memo invoice in AP.

Depending on how the RCV: Processing Mode Profile option, Receiving Transaction
Processor will be kicked off as soon as Receipt/Return transaction is saved.

If profile option RCV: Processing Mode = Batch, then user has to go and manually
launch Receiving Transaction Processor concurrent request.

If profile option RCV: Processing Mode = Immediate, then Receiving Transaction

Processor concurrent request will be launched and runs in the background. In this case
control comes back to user and he can do his operations.

If profile option RCV: Processing Mode = Online, then Receiving Transaction Processor
concurrent request will be launched. In this case control will not come back to user until
processor completes processing.
 
Q5.What setup is required to create a Debit Memo?
 
Navigate: Supply BaseàSuppliersàQuery on supplieràSitesàQuery on siteàPurchasing
tabàCheck the box for Create Debit Memo from RTS Transaction.
Make sure the check Box 'Create Debit Memo' is checked in the Return line while
doing the RTS Transaction.
 
Q6. Under what Conditions a Debit Memo can be created?
 
Automatic Debit Memo will be created only when billed quantity of Purchase Order is
greater than or equal to Returned Quantity. Return To Supplier reduces the PO billed
quantity by the returned quantity but in any case PO billed quantity will never go
below zero.
 
Q7. What to do if Debit Memo is not created after doing an RTS transaction?
 
Set the profile options ‘RCV: Processing Mode’ to Immediate and ‘RCV: Debug Mode’
to Yes. Receiving Transaction Processor log file (with debug messages of Receiving
and AP code) and database trace file for RTS transaction will help in finding the
cause of the problem.

Q8.Is Debit Memo not getting created when Inspection is involved?

This functionality has been incorporated in Procurement Family Pack ‘H’ through bug
2151718. Apply this patch and all its pre req patches.
These are the list of patches to be applied for Debit Memo functionality to work if
Inspection is involved.
 
1763128,
1842268, (AP patch)
2045028,
2144921,
2179807 and
2151718.
 
If Inspection is not involved, then no need to apply the above mentioned patches.