Hello all,
In Portugal, a common question concerns the use of credit notes versus reversals. The distinction between the two is significant and depends on the stage of the process in which they are applied, with notable implications for reporting. For a better understanding please check the differences.
Reversal Documents
Purpose:
Used to correct internal documents that were never sent to the customer.
Key Characteristics:
- Internal Use Only: No external communication or legal reporting involved.
- No Printout: These documents are not printed or shared externally.
- No Prefix or ATCUD: They do not require a document series prefix or ATCUD (Unique Document Code). Series still need to be created but should be done without the module prefix
- Same Fiscal Period: Must be issued within the same fiscal period as the original document.
- Dedicated Number Range: Requires its own number range for tracking and audit purposes.
Use Case Example:
You created an invoice by mistake and realized it before sending it to the customer. A reversal document is the correct way to cancel it internally.
Credit Notes
Purpose:
Used to correct documents that have already been sent to the customer.
Key Characteristics:
- External Communication: Legally reported and shared with the customer.
- Prefix and ATCUD Required: Must include a prefix (defined in SAP) and an ATCUD.
- Reference to Original Invoice: Must reference the original invoice or include a time reference for continuous services.
- Different Tax Codes: Uses specific tax codes for corrections, relevant for Annexes 40 and 41.
- Validation Rules:
- Same materials as the original invoice.
- Correction quantities cannot exceed the original.
- Dates must not precede the original invoice date.
- Dedicated Number Range: Like reversals, credit notes also require a separate number range.
Use Case Example:
A customer was overcharged or returned goods after receiving the invoice. A credit note is issued to adjust the amount accordingly.
✅Summary Table
Feature | Reversal Document | Credit Note |
Customer Communication | No | Yes |
Legal Reporting | No | Yes |
Printout | No | Yes |
Prefix & ATCUD | Not required | Required |
Fiscal Period | Same as original | Can differ |
Number Range | Dedicated | Dedicated |
Reference to Original Document | Not required | Mandatory |
Tax Code | Same as invoice | Different (Regulation-specific) |
Validation Rules | Minimal | Strict (materials, quantities, dates) |
Bluesky
