To clear a credit that will not be used: How to Pay Credit Memo in Oracle Payables

To clear a credit that will not be used: How to Pay Credit Memo in Oracle Payables.

We create Credit Memo in Payables when we want to make refund from Supplier. We Usually take refunds by adjusting these credit memos with the standard Invoices of the Supplier and then Pay the rest of the amount to the supplier by adjusting the Credit Memo amount. We do payments of Credit Memo in two ways as below.

For Example1: If we have an Supplier standard Invoice of $300 and I want to make refund from the supplier of $20 then I will create the Credit Memo of $20  and then after that I will create the Payment in Oracle Payables for this Supplier of $280 and in the Invoice Adjustment I will select both of the Standard Invoice of $300 and Credit Memo of $20 in this way both my Standard Invoice and Credit Memo both Pay Completely.

Example 2:- If we have no Standard Invoice for the supplier but I want to take refund from the Supplier then we will create the Credit Memo of $20 and in the Payment Window I will create the Refund Payment to take back amount from the Supplier and then this way I will make the Payment of this Credit Memo.

Example3:- If I have the Credit Memo in the System for Supplier A but I don’t want to take refund so in this case I need to close this Credit Memo in the system for this I will create the Standard Invoice for the same amount as like the Credit Memo($20) and then in the Payments Window we will do the Payment of $0 and then select both the Standard and Credit Invoice of $20 and net these invoices with the $0 payment.