What is 'A/R credit memo' in SAP SBO - SAP Business One?
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Component: SBO
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Component Name: SAP Business One
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Description: A posting that partially or fully reduces the balance of receivables.
A/R credit memo - Details
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Term: A/R credit memo
Component: SBO SAP Business One
Definition: An A/R credit memo in SAP Business One is a document used to record a reduction in the amount a customer owes. It typically reflects returns, discounts, or corrections to previously issued invoices, effectively decreasing accounts receivable balances.
How It’s Used: In real SAP Business One projects, A/R credit memos are created when customers return goods, receive price adjustments, or when billing errors need correction. For example, if a customer returns damaged products, an A/R credit memo is issued to offset the original invoice amount, ensuring accurate financial and customer account records.
Important Configuration:
- Set up numbering series for A/R credit memos in Administration > Setup > Financials > Document Numbering
- Define default accounts for credit memos in Financials > Chart of Accounts and link them to relevant business partners
- Configure document settings such as approval procedures or printing layouts under Administration > Setup > General > Document Settings
A/R credit memo - Related SAP Terms
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