Introduction for A/R Credit Memos A Credit Memo can be created from two modules:  the Accounts Receivable Credit Memo module or the RMA (Return Material Authorization) module. The Accounts Receivable Credit Memo section provides the ability to issue Credit memos against specific Invoice (Invoice CM) or create a General CM.  An Invoice Credit Memo will debit SCRAP and credit COGS.  If a partial credit is required without returned goods, create a General Credit Memo.  For returned goods, create an RMA .     The RMA (Return Material Authorization) module notifies receiving to expect a return from a Customer.  The authorization also allows for reworking/replacing the order so that the user doesn’t have to go to another screen to create a Sales Order.  Once the RMA is received, a Credit Memo automatically forwards to the Accounting Accounts Receivable Credit Memo module where it can be viewed and printed.  Rather than issuing an invoice Credit memo, the user may wish to use the RMA module instead.  Please refer to the RMA (Return Material Authorization) Management manual.  Note:  DO NOT use this module to create a Credit Memo if it involves return of inventory from a Customer, use the RMA process.  If the RMA is created from an Invoice the CM type will be "Invoice", if the RMA is a stand-alone the CM type will be "General".  See the attached word document <<How_CM_Affect_GL_Accts_090106.docx>> for further detail on how the different types of Credit Memo's affect the GL Accounts.