Tuesday 11 November 2014

What is a ‘Credit Memo’?

Answer

A ‘Credit Memo’ is issued by a vendor who has earlier supplied you some services or materials. The occasion is necessitated when the delivered goods are damaged or you have returned some of the goods back to the vendor. The system treats both the invoices and the credit memo in the same way, except that the postings are done with the opposite sign. If the credit memo is for the entire invoiced quantity, the system generates the credit memo automatically. However, if the credit memo relates to a portion of the invoiced quantity, you need to process it manually in the system.


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