Receivable Credit Memo
Credit memo is a document issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice. The credit memo usually includes details of exactly why the amount stated on the memo has been issued, which can be used later to aggregate information about credit memos to determine why the seller is issuing them.
A credit memo may be issued because the buyer returned goods to the seller, or there is a pricing dispute, or a marketing allowance, or other reasons under which the buyer will not pay the seller the full amount of the invoice. The seller records the credit memo as a reduction of its accounts receivable balance, while the buyer records it as a reduction in its accounts payable balance.
Foundry Bean Global work system uses receivables credit memo to reduce the customer balance. Customer is issued a credit memo after the original invoice is issued. Since invoice cannot be changed after it was issued, a credit memo is often required to adjust the customer balance.
Foundry Bean Receivable Credit Memo amount is always less than zero (negative amount).