When an invoice is posted with invoice reduction in SAP S/4HANA, the system executes two distinct actions. First, it posts an invoice document for the corrected (reduced) amount that the company accepts as a liability. Simultaneously, it automatically posts a credit memo for the difference between the vendor's original invoice amount and the corrected amount. This results in two separate accounting documents. To inform the vendor of this adjustment and the reason for the partial payment, the system generates a message (e.g., a letter of complaint) via its output determination function, which can then be sent to the supplier.

C. The invoice is blocked for payment until the supplier confirms the credit memo receipt.

This is incorrect. The system does not have a standard function to wait for supplier confirmation. Payment blocks are typically triggered by tolerance limit variances, not by the invoice reduction process itself.

D. Only one accounting document is created, containing both the invoice and the credit memo postings.

This is incorrect. To maintain accounting clarity and follow the document principle, SAP creates two separate documents: one for the invoice liability and one for the credit memo (claim against the vendor).

1. SAP Help Portal - SAP S/4HANA

"Invoice Reduction in Logistics Invoice Verification": This official documentation explicitly states the system's behavior. It confirms that two documents are created and a message is generated for the vendor.

"When you post the invoice

the system creates two documents: The invoice

for the amount you entered. A credit memo

for the difference between the amount you entered and the amount the vendor specified."

"The system also creates a mail message to the vendor

informing them of the reduction."

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/8308e6d301d54584a33cd04a9861bc52/2c6b89535c38b44ce10000000a174cb4.html (Note: This link is for a specific S/4HANA version

but the functionality is standard across recent versions).

2. SAP Press - "Materials Management with SAP S/4HANA: Business Processes and Configuration" (2nd Edition): This publication details the business process.

In Chapter 13

Section 13.5.3

"Invoice Reduction

" the authors describe the process: "When you post the invoice

the system creates two documents: an invoice for the corrected amount and a credit memo for the difference... The system also automatically generates a letter of complaint to the vendor." This corroborates the creation of two documents and a notification message.