3784726 - Supplier Credit Memo Posted Without Goods Return; Credit Accepted Without Stock Movement— SAP S/4HANA Cloud Public Edition

• A Supplier credit memo is posted without a corresponding goods issue/return delivery; the system accepts the posting without any stock reduction.
• For Eg : Goods receipt = 5 units; net invoiced quantity = 3 units; physical stock remains unchanged.
• Message M8 503 does not trigger during credit memo posting.

• Product: SAP S/4HANA Cloud Public Edition
• Fiori UI for Invoice Verification (Public Cloud)

1. Create a purchase order with goods receipt-based invoice verification active.
2. Post a goods receipt for 5 units.
3. Post supplier invoices for the received quantity.
4. Post a supplier credit memo for 2 units (damaged goods) without posting a return delivery or other stock reduction.

• Standard design separates financial corrections from stock movements: a supplier credit memo adjusts the invoiced quantity/value in purchase order history but does not move stock.
• No standard configuration or message enforces a goods return/stock movement before a credit memo.
• Message M8 503 applies to returns purchase orders; it is not triggered for normal purchase orders and does not enforce a prior stock movement.

1. Acknowledge standard behavior: supplier credit memos adjust invoiced quantity/value only; stock is unaffected.
2. Decide the physical handling for the damaged units, then record the appropriate stock movement:
   • If returned to the supplier: post a return delivery so stock decreases accordingly.
   • If scrapped/kept: post a scrapping or relevant stock adjustment so stock reflects reality.
3. If Evaluated Receipt Settlement (automatic settlement) is active, avoid duplicate credits:
   •  Do not post a manual credit and a return delivery that would auto-create another credit.
   •  If needed, reverse the manual credit and let the automatic process create a single credit, or perform a stock-only correction.
4. Message control limits: there is no standard message to force a goods return before a credit memo; M8 503 is not applicable to standard purchase orders.
5. If a blocking/validation is required, implement a custom validation using key-user tools (Custom Fields and Custom Logic) to prevent posting a supplier credit memo when no corresponding goods return/stock reduction exists.
6. After the stock movement, have finance clear any remaining “received-not-invoiced” difference on GR/IR as per period-end procedures.

• Refer to: 1978691 - Cannot Post Manual Credit Memo With Reference to Purchase Order for which there was no Goods Return

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