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Chapter 17 ■ End User - Accounting Document Posting
Posting a Credit Memo
A credit memo is a systematic reduction of the original invoice amount arising for a number of reasons.
You might reduce an invoice because the customer was accidentally overcharged, or the product delivered
was defective, or there was complaint about product delivered or service rendered, and so on.
When an invoice is posted to the system, the customer’s account is debited. On the other hand, when
a credit memo is posted, the customer’s account is credited to reduce the account balance by the credit
memo amount.
Problem: Your company invoiced a customer for the amount of $2000 for goods supplied,
but they complained that the goods had light damage on transit. You have been asked to
raise a credit memo to reduce the original invoice amount by $200. Your task is to post a
credit amount of $200 to the system to reduce the invoice amount from $2000 to $1800.
To post a credit memo, follow this menu path: Accounting ➤ Financial Accounting ➤ Account
Receivable ➤ Document Entry ➤ Credit Memo. Or use transaction code FB75. The Enter Customer Credit
Memo: Company Code C900 screen comes up (Figure 17-9).
Figure 17-9. The Customer Credit Memo screen, where you can enter a credit memo to reduce a customer’s
account and the G/L account against an invoice amount posted
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