Create On-Account Credit Memos

You can use the Credit Memo Option field from the subscription profile page to automatically create on-account credit memos during closure or amendment of subscriptions.

The Credit Memo Option field has 3 values:

• On-Invoice: The application creates a credit memo with reference to the subscription bill line invoice, irrespective of whether invoice is paid or not.
• On-Account: The application creates an on-account credit memo irrespective of whether the invoice is paid or not.
• Mixed: The application creates a credit memo with reference to the subscription bill line invoice if the invoice isn't paid or creates an on-account credit memo if the invoice has been paid.

The application checks whether the invoice impacted by amendment or closure has been paid in full or not. It then creates a credit memo based on the Credit Memo Option field value.

You can issue on-account credit memos from Subscription Management based on the subscription profile. This lets you preferentially create on account credit memos and credit memos against invoices based on whether an invoice is paid in full.

Things to Remember:

• The Allow overapplication property of a transaction type defined in Accounts Receivable is not considered in Subscription Management.
• If the invoice is not paid by the time credit memo line is interfaced to AR, but paid before the actual CM is created, the overapplication error may occur. You can either configure to allow overapplication or reduce the credit memo amount and import it again.
• If there are multiple credit memos created from different subscriptions/subscription products of same subscription in one batch and applied against an invoice. the overapplication error may occur. You can either configure to allow overapplication or reduce the credit memo amount and import it again.
• If you change the subscription profile "Credit Memo Option" value to "On Account" after some On Invoice credit memos have been issued, you can’t issue the credit memos again.