AP: Creation of Credit Memo

 

Credit Memo (CM) Invoice Creation
Business Scenerio: After Discount the amount payable is 10,000. Supplier called and asked to pay only 9,000. In this case we can use credit memo and reduce
the invoice amount.
Standard Invoice		10,000
Credit Memo (Other Reasons)		-1,000	we can use credit memo and it can be any reason but incase of purchase returns we have to use Debit Memo only.
Pay		9,000
*It can be any reason we can use the Credit Memo but incase of Purchase Returns we have to use Debit Memo
*Credit Memo can be created through Manual Process Only.
*Debit Memo can be created both in Manual and Automatic Processes.
Say for example supplier mistakenly entered invoice amount as 10,000 instead of 9,000 then in that case we use Credit memo or if supplier is offering discount in that scenerio aslo we can use credit memo
	Standard Invoice			10,000
	Less : Credit Memo (Supplier is offering some Discount)			1,000	We can use credit memo and it could be any reason but incase of purchase returns we have to use Debit Memo only
				9,000
Process
Create Standard Invoice		10,000 $
Credit Memo (Other Reasons)		-1,000
Pay		9,000
For Credit and Debit Memos we will follow the same process while entering them in the system.
Credit Memo can be created in different ways
1. Credit Memo against PO matched
2. Credit Memo against Invoice
3. Standalone Credit Memo