The term credit memo always refers to a credit memo from the vendor. Therefore, posting a credit memo always leads to a debit posting to the vendor account.

As in the case of invoices, credit memos can refer to purchase orders or goods receipts.

If such a reference exists, the system automatically determines the accounts to which the credit memo is to be posted.

To enter a credit memo into the system, you process the same screens as for invoice entry. Two types of credit memos are possible:

• Credit memos that refer to a purchase order or goods receipt
• Credit memos that do not refer to a transaction.