Is the billing document type for return orders related to physical goods movement 'G2'?

[suyoung_choi3]

Hi ALL,

In the billing document for a return order related to physical goods movement, the billing document type is designated as 'G2'.
Credit memos that are not related to physical goods movement are also set to 'G2' as the billing document type.
I don't understand why the return order and credit memo are both designated as 'G2' billing document type.
Could you please explain why this is set up this way?

Thank you.

[Chris1973 · Accepted solution]

Good day @suyoung_choi3 

Thank you for your question.

Here are some recommended references for more details.

Credit/Debit Memo - Create for Self-Billing, Customer Returns, Claims, Returns, and Refund Management,

To summarise, the fundamental approach SAP introduced for the public cloud is to keep the core clean. Which also explains why in public cloud SAP uses a single billing type (G2) for all credit transactions to customers. The system distinguishes between goods-related return and value-only credits through the preceding document, item category, and reference flow, not through different billing types. The goal for this approach is to support a clean, standardized, and finance-aligned billing architecture, which is consistent with the clean core strategy.

A glimpse at the E2E process also clarifies this. For the Return Order (with goods movement) it is, Return Order à Return Delivery à Goods Movement à Billing Document (G2) à Accounting: Credit Customer + Reverse COGS

Whilst Credit Memo (without goods movement) is, Credit Memo Request à Billing Document (G2) à Accounting: Credit Customer + Adjust Revenue

Both result in a credit to the customer, but the document flow and accounting impact differ.

Technically, it means:

• Both documents post to accounts receivable (credit customer) and reverse revenue/COGS depending on the process.
• SAP standardises the accounting interface by keeping one credit billing type (G2) to simplify integration across Finance, Revenue Accounting, and Returns Management.
• You cannot create new billing types in public cloud, instead, using the same billing type with different sales document types and item categorises for clarity and consistency.

Let me know if you have further questions.

Best regards

Chris

[suyoung_choi3 · Accepted solution]

Thank you for your response. I'm trying to report billing quantities related to inventory using only margin analysis data, but I'm having trouble because the billing type (G2) has two characteristics.