Credit Memo Automatically Gets Applied To The Original Invoice
Last updated on SEPTEMBER 20, 2017
Applies to:Oracle Order Management - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.2.4 version, Quoting & Negotiation
While creating return orders, the credit memo created gets applied to the original invoice even though the Credit Invoice field is made null in the Sales order line, returns tab.
Per this AR Community thread: How to stop Auto application of credit memo with Invoice (Community Discussion ID 2842963)
When you create the RMA (in Order Management), on the Returns TAB, there is a field 'Credit Invoice'.
By default, it gets populated with the invoice generated by the sales process.
If you clean this field, autoinvoice will generate an on account credit memo, so it will not be applied to any existing transaction.
1. Order Management Responsibility
2. Sales Orders > Query Order
3. Actions > Copy to an RMA
4. When the copy an order to an RMA (or manual entry) and reference a previous sale order in the 'Returns' tab
The field 'Credit Invoice' is also populated on the line.
5. User nulls out the field 'Credit Invoice' > Books Order
6. The line Invoice Interfaces > You can see the field in the RA_INTERFACE_LINES table has the value for 'reference_line_id' - per customer, this should not be populated because they removed the value for 'Credit Invoice'.
It is the line_id on the original invoice.
There are two major issues due to this behavior.
1. Credit Memos created from OM are auto-applying the credit balance on the Open Invoices. This is misleading to the Finance team who does the follow up on Open receivables.
2. Credit Memos created in OM for invoices that have been paid/closed are failing in the AR interface, as the system is try to apply the credit on the Invoice that is already closed.
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