Handling Return PO Invoice in Ariba P2P With PI interface to ECC
Work around for handling Return-PO Credit Memo in Ariba Invoice Pro to ECC
Vendors return PO process in ECC
Normally in some Chemical and Process industries materials are purchased with reusable containers or IBC totes which have unit price and can be refunded from vendors when those are returned to Vendor. In normal process the customer will gather these empty special containers or totes after consuming the material in it. They will ship to vendor when sufficient numbers of those to fit for their normal truck/wagon load by a separate Vendor return PO process. In ECC this scenario is handled by most of the customers by Vendor Return PO in which return indicator is checked in the PO and net value will be negative. GR returns can be done by 161 Movement type and Direct Credit Memo can be done in ECC.
Limitation in Ariba Invoice Management
In Ariba Invoice Pro Return-PO (Vendor Return Process) and direct Credit Memo for PO Invoices is not supported. Only direct credit memo is supported for Non-PO Scenarios. And customers are forced to handle this scenario out of Ariba Invoice pro or by different payment method to get credit from vendors for these return items.
Work around process & Minor enhancement in ECC
The Return-PO will be integrated with Ariba-Invoice Pro as a normal PO, and it won’t handle the return-PO field (EKPO-RETPO). We need to do minor enhancement in ECC for Vendor returns movement to integrate with Ariba as Rejected Qty like below to match ECC 161 GI to Vendor.
In “/ARBA/PARAM_TAB” an Ariba table for configurable parameters, we need to maintain 161-Movement Type as RETURN_MVT to integrate this GI to Ariba Invoice Pro.
ECC Setting in Table /ARBA/PARAM_TAB
Note: Even we are maintaining parameter for 161 Mov-Type as return in ECC as Ariba Invoice management isn’t supporting return functionality fully so it will show as Rejected in Ariba which means inventory sent to Vendor.
Once PO and GR are integrated to Ariba Invoice pro as expected then we need to do a small tweak while posting Invoice (credit memo).
Technically we need to post Negative Invoice in Ariba-Inv Pro like changing qty or price with negative value once it pulls data based on PO#. Now in the Invoice “Payable to supplier” will be showing as “-$100.00 USD”.
Invoice Integration to ECC
In ECC the Invoice should be posted as a Credit Memo instead of Invoice, for that we need to make some changes in exit “EXIT_SAPLMRMH_011” posting IDoc in ECC to post this particular type as “CRME” instead of “INVO” when the IDOC Field E1EDK01-BSART=Document Type specific Return PO with Return PO Indicator Checked.
This will make Invoice posted as Credit Memo in ECC and Vendor Payment integration will work fine without any Modification.
Any Customer where this return to Vendor process is handled separately without referencing the purchase PO, mostly process and Chemical manufacturing & Pharma will use this work around to fulfil their process without contrary. By the small tweak & minor enhancement we can match the $ amount value exactly same in Ariba Invoice Pro vs ECC without any Deviation or audit query.
Refer below links for SAP Ariba standard Process