When do I create a debit memo?

Create a debit memo to reflect a charge for an item that isn't a standard invoice item. Debit memos often reflect updates or adjustments to existing transactions.

You create debit memos to:

• Enter a price correction to a line item or the tax calculation on an original invoice.

• Include a required charge missing from an original invoice, such as freight.

• Create a debit memo reversal to record the amount of the net of a closed debit and credit transaction after reversing a receipt.

• Record late charges against a customer or customer site account.

  If you record late charges as debit memos, the application creates one debit memo per overdue transaction. Any penalties and late payment charges assessed appear as line items on the debit memo.

There's no link between invoices and debit memos. You can use the Cross Reference field or Special Instructions field on the debit memo to maintain reference information pertaining to the debit memo and the original transaction. Special instructions information appears on the printed debit memo document.

If you want to use a different numbering sequence for debit memos, you must set up and use a different transaction source.