Example of When a Credit Memo is More than the Invoice Amount

This is an example of a joint venture receivables invoice with both debit and credit invoice lines.

The following example shows the Invoice Details page of an invoice that has multiple credit and debit lines. The total invoice amount is $1500. There’s a change in the ownership definition that requires you to reverse and create a partial credit memo for the joint venture distribution associated with the third invoice line with $4,000.00.

This image shows an example of the balance details for an invoice, the details of which are described in the surrounding text.

The amount for which the credit memo needs to be created is more than the total invoice amount. You can create such a credit memo in Oracle Receivables only if you select the “Allow overapplication” checkbox for the joint venture invoice transaction type.

See Configure the Joint Venture Transaction Type to Create Credit Memos That Exceed the Invoice Balance.