Set Up Profile Option to Create Receivables Credit Memos

Set up the AR_USE_INV_ACCT_FOR_CM_FLAG profile option with at least one profile value. This profile option is used by the AutoInvoice process when creating credit memos.

Important: If you don’t set up a profile value for this profile option, the Autoinvoice process will end in error. It won’t create credit memos for receivables invoices.

1. Navigate to Setup and Maintenance.
2. On the Setup page, open the Tasks panel and search for Manage % Profile %.
3. Click Manage Administrator Profile Values from the search results.
4. On Manage Administrator Profile Values, enter AR_USE_INV_ACCT_FOR_CM_FLAG in the Profile Option Code field and click Search.
5. Scroll down to the AR_USE_INV_ACCT_FOR_CM_FLAG: Profile Values section and check if a profile value record exists for this profile option. If it doesn’t exist, make sure that you add at least one profile value that meets your business needs.
   For example, you can set up a record with “Site” profile level so that credit memos are created for all your joint ventures based on the profile value that you select:

   • If you select “No” for the profile value, the credit memos will be created using the accounts on the posted invoices.

   • If you select “Yes” for the profile value, the credit memos will be created using the accounts used to create the invoices. Any account override on the invoice during invoice posting isn’t used on the corresponding credit memo.

     Note: If you set the profile value to “Yes”, you must complete another setup to ensure accurate accounting for credit memos. See Derive the Partner Account for Credit Memos.
6. Click Save.