What is 'return of funds' in SAP PSM-FM - Funds Management?

return of funds - Overview

• Component: PSM-FM

• Component Name: Funds Management

• Description: The return of consumable budget amounts, carried out at a user-defined point in time. Example: A credit memo is received from a vendor because the goods in question were faulty. The money that would have been used to pay for the faulty goods is now returned to the budget.

return of funds - Details

• 
  Key Concepts: 
  Return of funds is a process in SAP Funds Management (PSM-FM) that allows for the return of funds from a customer or vendor to the company. This process is used when a customer or vendor has overpaid an invoice or has received an incorrect payment. The return of funds process allows the company to reclaim the overpayment and correct the payment. 
  
  How to use it: 
  The return of funds process in SAP Funds Management (PSM-FM) is initiated by creating a return of funds document. This document contains information about the customer or vendor, the amount to be returned, and any other relevant information. Once the document is created, it is sent to the customer or vendor for approval. Once approved, the funds are returned to the company and the payment is corrected. 
  
  Tips & Tricks: 
  When creating a return of funds document, it is important to ensure that all relevant information is included. This includes the customer or vendor name, address, and contact information, as well as any other relevant details such as invoice numbers or payment dates. Additionally, it is important to ensure that all documents are approved by both parties before any funds are returned. 
  
  Related Information: 
  For more information on SAP Funds Management (PSM-FM) and the return of funds process, please refer to SAP’s official documentation on Funds Management. Additionally,