How is Returns item category determined in settlement document?

[sharmalarmas]

Our custom contract types isn't handling credit memos, returns, and invoice cancellations correctly. Rather than accruing negative amounts for these document types, the system is accruing positive amounts. I believe this is because the item category of such items in the settlement document isn't being set to Returns Item (vs. Standard). but I can't figure out how the category is being set. Does anyone know?

I have confirmed that the quantity and amount signs are correct in the business volume table (they are negative as expected).

[gvictor]

Hi Allison,
Hope you're well.

Your issue isn't because of Settlement item category but it should be from the business volume table.
Business volume should be negative for Credit memo, invoice cancellation and Intercompany Credit memo (based on Document category VBTYP).

Please find below the standard code for CDS view VWB2_VBRKVBRP_1

Regards,

Gauthier Victor