Credit Memo and Debit Memo in Oracle Receivables

Credit Memo:  These will reduce the customer balance.

Let us create a ‘transaction type’ for a credit memo

Setup à Transactionsà Transactions

Select the class as ‘credit memo’ and creation sign as ‘negative’

Now let us create a source for the above created transaction type and map the above created transaction type to this source

Debit Memo:  These will increase the customer balance.

Let us create a ‘transaction type’ for a credit memo

Setup à Transactionsà Transactions

Select the class as ‘dedit memo’ and creation sign as ‘positive

’

Now let us create a source for the above created transaction type and map the above created transaction type to this source

Go to ‘account details’ window and check for the balance due from customer

Here we can see the customer balance in total is ‘130100’

Now create a credit memo transaction

Transactionsà Transactions

Select the ‘credit memo source’ which we have created and click on line items

Enter the amount in ‘negative sign’

Now complete the transaction.

Do the accounting for the transaction

Below is the accounting entry

Go to ‘account details’ window and check for the balance due from customer.

Where in we can see the change in balance

Now create a debit memo transaction

Transactionsà Transactions

Select the ‘credit memo source’ which we have created and click on line items

Now complete the transaction.

Do the accounting for the transaction

Below is the accounting entry

Go to ‘account details’ window and check for the balance due from customer.

Where in we can see the change in balance

Earlier we have seen how to apply a credit memo to a customer. Now we will see how to apply a credit memo to a ‘transaction’

Transactions à Transactions

Query a ‘transaction’

Go toà Actionsà Credit

Enter the ‘credit memo source’ and click on ‘credit lines’

Enter the amount in negative

Complete the credit memo transaction.

DO the accounting