SAP FB65: Post Vendor Credit Memo & Purchase Return
Mason Garcia
⚡ Smart Summary
Purchase returns in SAP are recorded with a vendor credit memo through transaction FB65, which reverses part or all of a supplier invoice and reduces the payable balance together with the associated input tax.
A purchase return is settled in Financial Accounting with a vendor credit memo. Transaction FB65 posts that credit memo directly against the supplier, without any reference to a purchase order, and mirrors the entry originally made when the invoice was booked.
How to Post a Purchase Return in SAP Using FB65
Step 1) Enter the transaction code FB65 in the command field, as shown below.
Step 2) In the next screen, enter the company code for which the document is to be posted. The pop-up below appears the first time FB65 is opened in a session.
Step 3) On the Basic data tab, enter the following. The screenshot after the list shows where each field sits.
- Enter the Vendor ID of the vendor to be issued the credit memo
- Enter the Document Date
- Enter the Amount to be credited
- Enter the tax code used in the original invoice
- Tick the Calculate Tax check box
Step 4) In the item details section, enter the following data. The grid pictured below carries the offsetting line.
- Enter the purchase account to which the original invoice was posted
- Enter the amount to be debited
- Select Credit
- Check the tax code
Step 5) Check the status of the document. A zero balance and a green traffic light, as in the strip below, mean the credit memo is complete.
Step 6) Press the Post button on the standard toolbar, highlighted below.
Step 7) Check the status bar for the document number generated, as confirmed in the message below.
The vendor credit memo for the purchase return has now been posted successfully, and it appears as an open debit item on the supplier account.
Key Fields and Document Types in FB65
FB65 shares its screen layout with the vendor invoice transaction, so a few fields decide whether the document behaves as a credit memo at all. The table below explains what each one controls.
| Field | What it controls |
|---|---|
| Transaction (header) | Defaults to Credit memo in FB65. Switching it to Invoice turns the same screen into an FB60-style posting, so it should be left unchanged for a purchase return. |
| Document Date | The date printed on the supplier credit note, normally the trigger for the baseline date. |
| Posting Date | The date the entry hits the ledger, and therefore the posting period and fiscal year. |
| Reference | The supplier credit note number. Recording the original invoice number here makes later matching far easier. |
| Document Type | KG for a vendor credit memo, against KR for a vendor invoice. The type drives the number range. |
| Tax Code | Must repeat the code used on the original invoice so the input tax reverses at the same rate. |
Because the credit memo debits the vendor and credits the expense or stock account, it is the exact mirror of the original invoice. Only the amount actually returned or over-billed should be entered, not the full invoice value, unless the whole delivery went back.
FB65 vs MIRO Credit Memo vs Subsequent Credit
Three different documents are commonly called a “credit memo” in SAP, and picking the wrong one leaves the purchase order history out of step.
| Aspect | FB65 credit memo | MIRO credit memo | MIRO subsequent credit |
|---|---|---|---|
| Module | Financial Accounting (FI) | Logistics invoice verification (MM) | Logistics invoice verification (MM) |
| Purchase order link | None | References the purchase order or goods receipt | References the purchase order |
| Effect on PO history | No effect | Reduces the invoiced quantity and value | Reduces value only; quantity stays unchanged |
| Typical use | Non-PO returns, service credits, overcharges on FI invoices | Goods physically returned against a purchase order | Price reduction agreed after the invoice was settled |
Where the Materials Management module is live and the goods went back on a return delivery, the credit belongs in MIRO so that the GR/IR clearing account and the purchase order history stay consistent. FB65 is the right choice when no purchase order sits behind the spend.
How to Clear a Vendor Credit Memo Against an Invoice
Posting the credit memo only creates an open debit item. The supplier account is not tidy until that item is matched against the invoice it relates to.
- Run FBL1N for the vendor and confirm that both the invoice and the credit memo appear as open items.
- Enter transaction F-44, key the vendor account, company code, clearing date and currency, then choose Process Open Items.
- Activate the invoice and the credit memo so that only those two lines are selected.
- Check the Not assigned field. A value of zero means the two amounts offset exactly and the document can be posted.
- If the credit memo is smaller than the invoice, use the Partial Payment tab to leave the invoice open, or the Residual Items tab to close it and raise a new open item for the balance.
- Post the clearing document, then rerun FBL1N to confirm both items now show as cleared.
The distinction between partial and residual matters for ageing reports. A partial clearing keeps the original invoice, and therefore its original due date, on the account. A residual clearing closes the original and creates a fresh item whose baseline date restarts, which can flatter the ageing analysis if it is used carelessly.
Where the credit memo is simply meant to shrink the next payment, no manual clearing is needed at all. The automatic payment run in F110 nets open credit memos against invoices for the same supplier before it proposes a payment amount, provided the payment terms and payment methods match.
If the credit memo itself was keyed incorrectly, reverse it with FB08 rather than posting a compensating invoice, and check the vendor line items again in accounts payable once the reversal has gone through.
