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Referencing invoice vs. sales order in credit memo

Former Member
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Can someone please explain to me why one would create a credit memo referencing an invoice as opposed to a sales order? What would the business scenario be for this case?

Thanks,

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Because Invoice is the official document for transactions. Your customer has got the original invoice and not sales order. So while sending Credit/Debit note print to customer you need to mention the invoice no. on it. It becomes easy to print invoice no.

Also, always order and invoice may not have 1:1 relationship.

There may be cases that ordered quantity and price and that of invoice varies. Invoice quantity, price, terms are considered as final.

Thanks

Former Member
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Just to be confirm then, you are saying we should always reference the Billing document rather than the sales order when doing a Return Order?

Former Member
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Its right procedure to reference invoice when issuing Credit or Debit notes. This will keep the accounting right. If you create credit memo with reference to an Order and if this order is not invoiced yet, there will be wrong accounting.

Also when processing returns, its recommended to reference invoice.

Regards

Sai

Former Member
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Yes, same for return as well.

Thanks

Answers (0)