Intercompany Reversals and Credit Memo Processing
When an invoiced intercompany transaction is reversed, Oracle Fusion Intercompany generates a credit memo, when configured, for the receivables invoice created from the original intercompany transaction.
Depending on configuration and the option selected during reversal processing, the application generates either a standard credit memo or an on-account credit memo. A standard credit memo references and applies directly to the original receivables invoice generated from the intercompany transaction. Whereas an on-account credit memo is generated as an unapplied credit memo and can be manually applied in Receivables.
Default Behaviour
The default credit memo type is determined by the intercompany setup.
When creating an intercompany reversal, users can review the default option and select a different credit memo type for the reversal transaction.
Supported Transactions
Credit memo processing applies to intercompany reversals processed from:
- Batch-based intercompany transactions
- Multitier intercompany transactions
- Cross-charge intercompany reversals generated from Document Preparation