What is a Customer Credit Memo?

After talk about the customer invoice, it’s time to talk about Customer Credit Memo. What is it?

Customer Credit Memo also is an accounting document. Yes, but what it represents?

Easy, it is a document to reduce the amount to be paid by a customer. For example if a customer performs a return of goods, a Customer Credit Memo should be created in the system. In this case, the creation of this accounting document will credit the customer account.

The Customer Credit Memo can be created using transaction FB75 or F-27. Also following this path:

SAP Menu->Accounting->Financial Accounting->Accounts Receivable->Document Entry->FB75 – Credit Memo or F-27 Credit Memo General