Reverse Debit Memo Induction

8 Reverse Debit Memo Induction

The Reverse Debit Memo Induction process mirrors the functionality of the User Interface Reverse Debit Memo process but allows for debit memos to be reversed en masse, rather than reversing one document at a time. Reversing a Debit Memo generates an offsetting Credit Memo, and optionally generates a Receiver Cost Adjustment or Receiver Unit Adjustment to update Inventory and Weighted Average Cost (WAC) in MFCS. The functionality to upload a request to reverse a Debit Memo into Invoice Matching supports two methods of submitting the request.

Upload via spreadsheet: In this process, the user will upload the request to reverse a debit memo using a spreadsheet (.ods file). The template for the spreadsheet will be configured using the Merchandising Template Configuration screen. A standard template will be available to the user as a starting point for creating custom templates. For example, you may want to create a template without the Debit Memo Cost Reason Code if you never resolve discrepancies with multiple reason codes. For more information on template configuration, see the Merchandising Foundation Cloud Service Implementation Guide chapter titled Configure Spreadsheet Download/Upload.
Upload via bulk (batch) process: For the bulk upload, Request to Reverse Debit Memo data will be present in XML format with the data formatted similar to the spreadsheet induction upload template. This batch process is used for uploading the data into Invoice Matching. For this method, the format of the upload file is not configurable using this method.

Upload Process

The Reverse Debit Memo Induction process flow is outlined in the figure above. Once a request is submitted for processing, it is assigned a process ID and added into a processing queue. Ultimately, the status of various requests can be tracked through their respective process IDs via the Data Loading Status screen in Invoice Matching. All requests are sent to a queue and assigned a status In Queue until it is picked up for processing. Once picked up the status of the request is updated to Processing. Once the processing is completed then the process status is updated to Processed Successfully if no processing errors are noted in any of the records. If processing errors exist in any of the records uploaded, then the process is assigned a status of Processed with Errors.

Validations

There is a set of general data validations that are performed while uploading reverse Debit Memo data through all the three modes of upload. The detailed set of validations that are performed are given below. However, before the detail level validation is performed, the file or service format is validated to ensure that all the expected data elements are included. If this fails, then the whole upload is rejected. Next, the processing moves on to data level validation. If any of this validation fails, then the corresponding error is logged against the failed record and the processing continues to the next record.

There are two template types called 'Reverse Debit Memo Quantity', and 'Reverse Debit Memo Cost'. Under each Template Type is a base template called: 'Reverse Debit Memo Qty', and 'Reverse Debit Memo Cost' respectively. Additional templates can be customized using the Data Loading Template Configuration screen in Merchandising.

The “worksheet” validations that are performed while uploading reverse debit memo data ensure that the expected components are properly included in the data set, referring to how the data is organized when uploading via a spreadsheet template. For the batch and web service formats, this is the full set of data, since configuration of the format is not allowed. However, when you create custom templates for spreadsheet upload, you can omit some of the columns in the worksheet, if not required for the type of reversal you are creating or updating.

Note:

The rest of this document will refer to the spreadsheet format for data upload. However, the validations also apply for the other formats, unless otherwise noted.

Reverse Debit Memo Process Flow

The Vendor, Document Number, and Document Type^Foot 1 are combined to identify the document which needs to be reversed. If the vendor number is not provided, the supplier site is used to look up the vendor. If the debit memo is not found an error message is generated. In some instances, the document date may be required to uniquely identify a document.

After the debit memo document is found, the Reverse Debit Memo process supports:

Reversing all items on the debit memo;
Reversing a single item on a debit memo;
Reversing a portion of the quantity for an item on a debit memo quantity document;
Reversing a portion of the amount per unit for an item on a debit memo cost document;
Reversing an item which has been previously partially reversed.

Additionally, for any debit memo cost reversal, you can optionally do a receiver cost adjustment, and for any debit memo quantity reversal you can optionally do a receiver unit adjustment. The receiver cost adjustment and receiver unit adjustment will make item inventory and WAC adjustments in MFCS.

Validations on Create

If you are creating a new reversal, there are two types of validations, worksheet level and field level. This section reviews each of the template types including worksheet and field level validations.

Invoice Matching supports the creation of resolution documents based on either cost differences or quantity differences. If an item has both cost and quantity variances, it is possible to create both a debit memo cost and debit memo quantity for the same item on the invoice. The reverse debit memo process handles both cost documents and quantity documents.

Reverse Debit Memo Cost

For Debit Memo Cost documents, the Amount Per Unit (or unit cost), is used to reverse the document. For instance if item ABC has a quantity of 100, and a unit cost of $5.00, and you want to reverse the whole document, you would specify $5.00 as the reversal amount and $5.00 would be the unit cost on the Credit Memo. If you only want to reverse half of the debit memo cost, then you would specify $2.50 as the reversal amount and the $2.50 would be the unit cost on the Credit Memo. Because the document is a Credit Memo Cost, the quantity will be the 100 from the debit memo cost for both these scenarios.

Field	Required (?)	Rules for Validation
Request ID	Y	The Request ID is a unique sequence number for this spreadsheet. The sequence number should start with 1 and should increment by 1. There should be no gaps or duplicates in the sequence. It is used in error handling to identify the row which a particular error relates to.
Action	Y	This field designates the action to be taken. 'Create (C) ' is the only action available. This action will reverse the debit memo with a credit memo, and optionally do a receiver cost adjustment. The 'Create (C)' value can be selected from a dropdown in the spreadsheet.
Vendor	N*	The vendor number for the debit memo to be reversed. *If vendor is not provided, then supplier site number must be provided, and it is used to lookup the vendor number. The vendor number, document number and document type = 'DEBMEC' are used to identify the debit memo to be reversed.
Supplier Site	N**	The supplier site number for the debit memo to be reversed. **If vendor is not provided, then supplier site number must be provided, and it is used to lookup the supplier parent to use as the vendor number. If vendor number is entered, then the supplier site number is optional. If supplier site is entered, it must be a supplier site under the vendor.
Document Number	Y	The document number of the debit memo to be reversed. The vendor number, document number and document type = 'DEBMEC' are used to identify the debit memo to be reversed.
Document Date	N	Document date is optional, but may be required for duplicate document check when the system option 'Include Doc Date for Dup Check' or 'Include Doc Year for Dup Check' is set. If entered, it must be a valid date less than or equal to the current date.
Item	N	The item number to be reversed. If item is left as null, all items on the debit memo are fully reversed, and reverse amount per unit must be null. To reverse more than 1 but not all items on the debit memo, each item to be reversed would be on a separate row of the spreadsheet.
Item Description	N	The item description is informational only, it is not used in the upload. It was included as a convenience, for the users of the spreadsheet to allow a description to be associated with the item number.
Debit Memo Cost Reason Code	N	The reason code associated with the item to be reversed. This field is only needed if the original discrepancy was resolved with multiple reason codes and you only want to reverse the amount per unit associated with one of the reason codes. Using multiple reason codes to resolve a discrepancy is rare for most retailers. For retailers not doing it, the recommendation is to create and use a custom template where this field is left off.
Reverse Amount per Unit	N	Enter the Amount per Unit (Unit Cost) to be reversed. If left null, the entire Available Amount per Unit for the item on the debit memo will be reversed. Available Amount per Unit is the original unit cost on the debit memo minus any Amount per Unit which had already been reversed. If entered, the value must be > 0.
Reverse Reason Code Cost	Y	The reason code to use for reversing the debit memo. This must be a Credit Memo Cost reason code.
Receiver Cost Adjustment Reason Code	N	Optionally enter the reason code associated with the Receiver Cost Adjustment. Entering this code will do a receiver cost adjustment in Merchandising including entries to tran data to adjust inventory and WAC on the item. The reason code used must have an action of 'RCAMR', or 'RCASMR. These two actions ensure the already matched receipt which generated the reversed debit memo will have its unit cost updated. Note: To do a Receiver Cost Adjustment, the associated Credit Memo Cost Reason Code must use UNR as its transaction code. See the ''Setting Up Credit Memo Reason Codes with UNR Transaction Codes ' section below for more details.
Comment	N	Optionally enter a comment associated with the reversal.

Reverse Debit Memo Quantity

For Debit Memo Quantity documents, the quantity is used to reverse the document. So for instance if item ABC has a quantity of 100, and a unit cost of $5.00, and you want to reverse the whole document, you would specify 100 as the reversal amount and 100 would be the quantity on the Credit Memo. If you only want to reverse half of the debit memo quantity, then you would specify 50 as the reversal amount and 50 would be the quantity on the Credit Memo. Because the document is a Credit Memo Quantity, the unit cost will be the 5.00 from the debit memo quantity for both these scenarios.

Field	Required (?)	Description
Request ID	Y	The Request ID is a unique sequence number for this spreadsheet. The sequence number should start with 1 and should increment by 1. There should be no gaps or duplicates in the sequence. It is used in error handling to identify the row which a particular error relates to.
Action	Y	This field designates the action to be taken. 'Create (C)' is the only action available. This action will reverse the debit memo with a credit memo, and optionally do a receiver unit adjustment. The 'Create (C)' can be selected from a dropdown in the spreadsheet.
Vendor	N*	The vendor number for the debit memo to be reversed. *If vendor is not provided, then supplier site number must be provided, and it is used to lookup the vendor number. The vendor number, document number and document type = 'DEBMEQ' are used to identify the debit memo to be reversed.
Supplier Site	N**	The supplier site number for the debit memo to be reversed. **If vendor is not provided, then supplier site number must be provided, and it is used to lookup the supplier parent to use as the vendor number. If vendor number is entered, then the supplier site number is optional. If supplier site is entered, it must be a supplier site under the vendor.
Document Number	Y	The document number of the debit memo to be reversed. The vendor number, document number and document type = 'DEBMEQ' are used to identify the debit memo to be reversed.
Document Date	N	Document date is optional, but may be required for duplicate document check when the system options 'Include Doc Date for Dup Check' or 'Include Doc Year for Dup Check' is set. If entered, it must be a valid date less than or equal to the current date.
Item	N	The item number to be reversed. If item is left as null, all items on the debit memo are fully reversed, and reverse amount per unit must be null. To reverse more than 1 but not all items on the debit memo, each item to be reversed would be on a separate row of the spreadsheet.
Item Description	N	The item description is informational only, it is not used in the upload. It was included as a convenience, for the users of the spreadsheet to allow a description to be associated with the item number.
Debit Memo Quantity Reason Code	N	The reason code associated with the item to be reversed. This field is only needed if the original discrepancy was resolved with multiple reason codes and you only want to reverse the quantity associated with one of the reason codes. Using multiple reason codes to resolve a discrepancy is rare for most retailers. For retailers not doing it, the recommendation is to create and use a custom template where this field is left off.
Reverse Quantity	N	Enter the quantity to be reversed. If left null, the entire Available Quantity for the item on the debit memo will be reversed. Available Quantity on the debit memo is the original quantity for the Item minus any quantity which had previously been reversed. If entered, the value must be > 0.
Reverse Reason Code Quantity	Y	The reason code to use for reversing the debit memo. This must be a Credit Memo Quantity reason code.
Receiver Unit Adjustment Reason Code	N	The reason code associated with the Receiver Unit Adjustment (RUA). Entering this code will do a receiver unit adjustment in Merchandising including entries to tran data to adjust inventory and WAC on the item. The reason code must have an action of 'RUA'. Note: To do a Receiver Unit Adjustment, the associated Credit Memo Quantity Reason Code must use UNR as its transaction code. See the 'Setting Up Credit Memo Reason Codes with UNR Transaction Codes' below for more details.
Comment	N	Optionally enter a comment associated with the reversal.

Deleting Credit Memo Generated from Reversed Debit Memo

Credit Memos created via the reversal process which do not do a receiver adjustment can be deleted until they are in Posted status. If deleted, the remaining cost/quantities available for reversal on the debit memo will be updated.

Credit Memos created via the reversal process which do a receiver adjustment cannot be deleted, instead an offsetting standalone Debit Memo would need to be created to offset the Credit Memo, and adjustments for the receiver adjustment would need to be done manually in Merchandising.

Upload Errors

If your spreadsheet upload encounters errors, these will be visible in the Data Loading Status page in Invoice Matching. You will also receive a notification to alert you that there are issues to review. The View Errors page for your upload will show the errors that were encountered to help direct you in correcting the issues. For more details, see the Invoice Matching Cloud Service Do the Basics User Guide section titled Manage Data Loading Requests.

If using the bulk upload, no notifications is raised. However, the errors are visible in the Data Loading > Manage Requests page as well. If you want to access any errors externally, then the process status table SVC_PROCESS_TRACKER and the error table RDS_WV_IM_PROCESS_ERROR will be exposed by replication in the Retail Data Store (RDS).

Setting up Credit Memo Reason Codes with UNR Transaction Codes

Since Reversing a debit memo is already an action available, the new features in the UI are immediately available after the upgrade is completed.

In order to utilize the Receipt Adjustment functionality of the Debit Memo reversal process, Credit Memo Cost and Credit Memo Quantity reason codes which use UNR as the transaction code for G/L Segments must be created. This will ensure the correct accounting entries are made on the Credit Memo when the receipt adjustments are included in the reversal process.

Here are the details around this requirement:

When reversing a debit memo with the option to include an RCA or RUA adjustment, the accounting entries associated with the Credit Memo must use the UNR Transaction Code G/L Segments rather than the ‘standard’ expense entries setup on the standard Credit Memo reason codes.

The Reason Code Maintenance screen supports using UNR as the transaction code for assigning the G/L Segment Mapping on Credit Memo Reason Codes (Cost and Quantity).

Here is a screen shot of the Reason Code Maintenance screen showing the setup of a UNR transaction code on a Credit Memo Quantity reason code:

Credit Memo Reason Codes designated with a UNR Transaction Code are only used when reversing Debit Memos. These reason codes are restricted from being used from any of the Resolution Popups (including the Detail Match screen, Discrepancy Resolution List, and Credit Note Detail Match Screen). The codes are also restricted from the auto resolution option on Tolerance maintenance, and the Credit Note Matching Auto Resolution codes on system options. Reason codes with UNR Transaction Codes for G/L segments should only be allowed in the Reverse Debit Memo process.

The use of a Credit Memo reason code with a UNR Transaction Code for the Reversal Reason Code controls whether the Receiver Unit Adjustment Reason Code field and the Receiver Cost Adjustment reason code field are enabled in the Reverse Debit Memo screen, and whether RCA or RUA codes can be used in the induction upload.

Footnote Legend

Footnote 1: The document type is not entered, instead it is determined based on the template type. The 'Reverse Debit Memo Cost' template type is used only for 'Debit Memo Cost' document types. The 'Reverse Debit Memo Quantity' template type is used only for 'Debit Memo Quantity' document types.