Click Enter/Adjust Invoice and select the Standard Invoice for which the amount should be reduced in the first line and the CD/DR memo in the next line.Select the bank account and document number you are paying from.Select the Supplier and every other detail.Enter the CR/DR memo with the reduction amount.The Invoice for this scenario will also be created already.Here are the steps for entering the transaction in Scenario 2 The accounting in this case will debit your bank account and Credit the Liability.Enter the check number, which is used by supplier to pay the refund amount.Select the bank account in which you are receiving the refund from supplier.Now pay the CR/DR memo you can use the “Pay in Full” option or the Payment window.With this, the Invoice Line and Distributions will be copied to CR/DR memo with the respective correction in Distribution lines.Click on Select and enter the amount to be corrected say -2000 or the total amount -3000.Enter invoice number to be corrected i.e.

Don’t give the Invoice Line or Distribution amount.Scroll the invoice header section to the Match Action column and select “Invoice” from the drop down.Give it a number say INV-001DR1 with amount -3000/.Create CR/DR memo for same supplier in INV-001.Create an invoice if you want to test this scenario, let’s say invoice number INV-001 with amount 15000/.Here are the steps for entering the invoice for Scenario 1 In second scenario where the invoice is overcharged but open or not paid a CR/DR memo will reduce the payment amount. In first scenario where invoice was overcharged and has been paid to the supplier a CR/DR memo will create a Refund i.e. There are two possible scenarios in Payables for entering a CR or DR memo a Credit Memo is given by the supplier if it finds any discrepancy in the amount invoiced and debit memo is given by the customer if they identify any discrepancy.ĭebit Memo: A negative change in invoiced amount identified by customer and sent to supplier.Ĭredit Memo: A negative change in invoiced amount identified by supplier and sent to customer Here in Payables the difference between CR and DR memo is of initiation i.e. However this concept doesn’t apply in Oracle Payables. There is a concept that if an invoice amount needs to be increased then a CR memo is entered and if it needs to be decreased then DR memo is entered. the organization using Oracle Payables (Payer) or the Supplier (Payee) it is going to pay. This reduction can be of any reason and from either side i.e. In Oracle Payables both of them are used to reduce the invoice amount. Before getting into the transactions, let’s see what are Debit Memos and Credit Memos.

Debit memo