Credit Memos with Sales Taxes: General Information

Credit memos are used to adjust the balances of the previously issued invoices or in other cases when corrections are needed. The balances of open credit memos with at least one sales tax decrease a customer's balance and decrease the amount of the sales tax payable.

You use the Invoices and Memos (AR301000) form to create and process credit memos with sales taxes.

Learning Objectives

In this chapter, you will learn how to do the following:

• Create and release a credit memo
• Analyze the GL transaction created by the system

Applicable Scenarios

You create a credit memo with at least one sales tax when the invoice overcharged the customer or the customer reported receiving damaged goods, and you want to decrease the customer's balance and the amount of taxes payable.