What is credit memo in SAP SRM-EBP-INV - Invoicing?

SAP Term: credit memo

• Component: SRM-EBP-INV

• Component Name: Invoicing

• Description: Document that reduces the invoice recipient's obligations to the vendor or service provider. A credit memo is normally created if the goods supplied or the service provided turns out to be defective or if the price charged is too high. It includes general credit memo information, such as total amount, total tax, freight costs, vendor and invoice recipient, and detailed credit memo information header information, item information, approval preview.

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• Key Concepts: 
  A credit memo is a document issued by a seller to a buyer that reduces the amount of money the buyer owes for goods or services. It is used to correct an invoice that was issued in error or to return goods that were not satisfactory. Credit memos are typically issued in the form of a check, money order, or electronic transfer. 
  
  How to use it: 
  In SAP SRM-EBP-INV Invoicing, credit memos are used to adjust the amount owed by the buyer. The credit memo can be used to reduce the amount due on an invoice, or it can be used to return goods that were not satisfactory. The credit memo can also be used to correct an invoice that was issued in error. 
  
  Tips & Tricks: 
  When issuing a credit memo, make sure to include all relevant information such as the invoice number, date of issue, and amount of the credit memo. This will ensure that the credit memo is properly applied to the correct invoice. 
  
  Related Information: 
  Credit memos are often confused with debit memos, which are documents issued by a seller to a buyer that increase the amount of money the buyer owes for goods or services. Credit memos and debit memos are both used to adjust invoices, but they have different effects on the amount due.