Creating a Receivables Credit and Debit Memo in Oracle Fusion Applications

What is a Credit Memo or a Debit Memo?

In Receivables, a Credit Memo decreases the value of a transaction while a Debit Memo Increases the value of a transaction. Both of these are linked to the original Invoice.

What's the difference of an Adjustment as compared to Credit/Debit Memos? 

In an adjustment, the amounts are updated for the original transaction whereas a Debit Memo or Credit Memo is a new transaction that is linked to the Original Invoice like an addendum. Although note that we can create a separate Credit/Debit Memo that is not linked to an Invoice. These are called on-account Credit/Debit Memos.

When is it preferred to use Adjustments or Credit/Debit Memos?

It depends on the organization requirement as well as statutory requirements that prevails in a country to decide which approach should be followed. But Adjustments are more commonly used when there is an error in the original amount stated in the Invoice, whereas Credit/Debit Memos are used when there is an amendment in the actual invoice.

Steps in creating a Credit Memo

So navigation is step one. Once we're logged in terms of starts us in the Billing work area. And we're looking for the Task Credit Transactions.

A window will prompt the user to search and select the original invoice the Credit Memo will be linked to. Once selected, click "OK".

On the "Credit Memo" screen, fill up the required fields. For the Credit Memo Amount, the user may either put in the exact amount or a percentage from the Original amount. Once done, click on "Save and Close". This will effectively create a Credit Memo linked to the Original Invoice.

You may search and verify for the newly created Credit Memo by navigating to Billing Work Area > Task Panel > Manage Transactions screen:

View the Credit Memo's report by selecting the Transaction and clicking on the "View PDF" button:

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