Create A/R Credit Memo

Create an A/R Credit Memo to reduce or reverse an amount owed on a customer account. Credit memos can be created standalone, from a specific A/R Invoice (with line-level quantity selection), or from a Commerce return document.

A/R Credit Memo create form showing header fields, line items table, and source invoice indicator

Accessing the Page

From the A/R Credit Memos list, click New Credit Memo, or navigate to /finance/ar/credit-memos/new.

To create from an existing invoice, click New from Invoice on the list page and select the source invoice from the search dialog. To create from a return document, click New from Return or New from Return Delivery.

Form Overview

Area	Description
Document Header	Customer, date, due date, contact, addresses, currency, source invoice reference
Line Items	Editable table of items, quantities, prices, taxes, and warehouses
Document Footer	Payment terms (optional), price list, remarks, and totals

Button	Behavior
Create Credit Memo	Validate and submit the form
Cancel	Discard and return to the list

Document Header Fields

Field	Required	Type	Description	Default	Validation
Customer	Yes	Entity select	Active customer business partner	—	Locked if credit memo is tied to a source invoice
Document Date	Yes	Date	Credit memo date	Today	—
Due Date	No	Date	Date by which the credit should be applied	—	Cannot be before document date
Contact	No	Entity select	Contact person from the selected customer	—	Filtered to active contacts
Billing Address	No	Entity select	Billing address from the selected customer	—	Filtered to billing-type addresses
Shipping Address	No	Entity select	Shipping address from the selected customer	—	Filtered to shipping-type addresses
Currency	Yes	Select	Transaction currency	Customer or source invoice default	Locked if tied to a source invoice
Reference	No	Text	External reference number	—	—
Source Invoice	No	Read-only	The A/R Invoice this memo is linked to (set automatically when created from an invoice)	—	—

Line Items

Field	Required	Type	Description	Default	Validation
Item	Yes	Entity select	Item from the product catalog	—	Must be a valid item code
Description	No	Text	Line description	Item name	—
Quantity	Yes	Number	Quantity being credited	—	Must be > 0; cannot exceed remaining creditable quantity from source invoice
Unit Price	Yes	Number	Credit price per unit	From source invoice line	Min 0
Disc %	No	Number	Line discount percentage	0	0–100
Tax Category	Yes	Entity select	Tax category for the line	—	Required
Warehouse	Yes	Entity select	Warehouse for the line	—	Required
Notes	No	Text	Line-level notes	—	—

When the credit memo is linked to a source invoice, quantities are validated in real-time against the remaining creditable quantity per line.

Field	Required	Type	Description	Default	Validation
Payment Terms	No	Entity select	Payment terms (optional for credit memos)	From source invoice	—
Price List	Yes	Entity select	Price list for pricing	From source invoice or customer default	—
Remarks	No	Textarea	Free-text notes on the document	—	—

Validation Rules

Rule	Behavior
Customer required	Cannot submit without a customer
Price List required	Cannot submit without a price list
At least one line required	Cannot submit with an empty lines table
Quantity > 0	All line quantities must be positive
Quantity ≤ remaining	When linked to a source invoice, quantity cannot exceed remaining creditable quantity
Tax Category required	Each line must have a tax category
Warehouse required	Each line must have a warehouse
Customer locked when from invoice	Customer and currency cannot be changed if the memo is tied to a source invoice
Stocked-item credit lines require a Customer Return or Return Delivery source	Stocked lines must originate from the matching return document before they can be posted

Post-save behavior

After successful creation the credit memo is assigned a document number with Draft status and you are redirected to the A/R Credit Memo Detail page.

From-Invoice Flow

When using New from Invoice:

Select an eligible posted invoice from the search dialog
A Line Picker dialog shows all invoice lines with their remaining creditable quantities
Select lines and enter the quantities to credit
Confirm — the credit memo is created with header data inherited from the source invoice

From-Commerce Flow

When using New from Return or New from Return Delivery:

Select the source document from the search dialog
A Line Picker shows lines with remaining creditable quantities from the return
Select lines, confirm — the credit memo is created immediately

Common tasks

From the A/R Credit Memos list, click New from Invoice.
Select the relevant posted invoice and choose the lines and quantities to credit.
Confirm — the credit memo is created in Draft status.

Permissions & system behavior

Creating credit memos requires the canCreateARCreditMemo permission.

A/R Credit Memos — List all credit memos
A/R Credit Memo Detail — View and post a credit memo
A/R Invoices — Source invoices for credit memos