{ "test_id": "ORCL.P2P.AP.INV.CREATE.CREDITMEMO", "scenario_name": "Create Credit Memo", "application": "Oracle Fusion Cloud", "product": "Financials", "module": "Accounts Payable", "process": "Invoice Processing", "business_flow": "Procure-to-Pay", "scenario_type": "Positive / Functional", "priority": "High", "automation_status": "SyntraFlow Ready", "library": "Syntra Standard", "canonical_url": "https://www.syntraflow.cloud/oracle-erp-testing-tool/test-library/financials/accounts-payable/invoice-processing/create-credit-memo/", "objective": { "intro": "This scenario validates the creation and downstream processing of supplier credit memos in Oracle Fusion Payables, confirming that credit amounts, tax, and distributions are captured correctly regardless of whether the credit is standalone or tied to a prior invoice.", "confirms": [ "A credit memo can be created for a valid supplier and supplier site with a negative or credit-typed amount", "Credit memos can be entered as unmatched (standalone) documents with manually keyed distributions", "Credit memos can be entered with a reference to an existing invoice for full or partial credit", "Credit memo line amounts do not exceed the outstanding balance of the referenced invoice when matched", "Tax is recalculated or reversed proportionally to the credited amount and line", "Distribution combinations on the credit memo mirror or appropriately offset the original invoice's accounting", "Multi-currency credit memos inherit the currency and conversion rate context of the referenced invoice or business unit", "The credit memo validates, routes through approval, and creates accounting as a credit-typed AP transaction", "The resulting credit balance is available for application against future payments or for refund processing" ], "scope_note": "This scenario tests the creation of a new credit memo document; it is distinct from cancelling or voiding an existing invoice, which reverses a transaction rather than recording a new supplier credit." }, "preconditions": [ "Supplier and supplier site are active and enabled for invoicing in the target business unit", "For matched credit memos, the reference invoice exists, is validated, and has an open (non-zero) balance", "Accounting period for the credit memo date is open in both the subledger and, if applicable, the referenced invoice's ledger", "Payables invoice options and supplier site defaults (payment terms, liability account, tax registration) are configured", "Tax rules and tax classification codes applicable to the original transaction type are active", "Distribution set or expense/liability account combinations are valid in the current chart of accounts", "User has the Accounts Payable Invoice Entry role with credit memo creation privileges", "Approval hierarchy/workflow rules for AP credit memos are configured for the business unit", "Currency and conversion rate type are defined for the transaction currency if different from the ledger currency" ], "test_data": [ { "field": "Supplier", "example": "Redwood Office Supplies Inc." }, { "field": "Supplier Site", "example": "RWD-US-EAST" }, { "field": "Invoice Type", "example": "Credit Memo" }, { "field": "Credit Memo Number", "example": "CM-2026-08421" }, { "field": "Credit Memo Date", "example": "12-Aug-2026" }, { "field": "Reference Invoice Number", "example": "INV-2026-10233 (blank for unmatched)" }, { "field": "Business Unit", "example": "US1 Business Unit" }, { "field": "Currency", "example": "USD" }, { "field": "Credit Amount", "example": "-1,250.00" }, { "field": "Line Type / Description", "example": "Item \u2014 Returned Units (Qty 25)" }, { "field": "Tax Classification Code", "example": "STANDARD_REVERSE" }, { "field": "Distribution Combination", "example": "01-000-2210-0000-000 (AP Liability offset)" }, { "field": "Payment Terms", "example": "Net 30 (inherited from reference invoice)" } ], "business_steps": [ { "step_number": 1, "step_name": "Navigate to Invoices", "action": "Open the Invoices work area and select Create Invoice", "test_data": "", "expected_result": "Create Invoice page opens with Business Unit defaulted", "validation_type": "action" }, { "step_number": 2, "step_name": "Set Invoice Type", "action": "Set Invoice Type to Credit Memo", "test_data": "Invoice Type = Credit Memo", "expected_result": "Header fields adjust to accept a credit-typed transaction", "validation_type": "action" }, { "step_number": 3, "step_name": "Select supplier", "action": "Enter the supplier and supplier site", "test_data": "Redwood Office Supplies Inc. / RWD-US-EAST", "expected_result": "Supplier defaults (liability account, payment terms, currency) populate", "validation_type": "action" }, { "step_number": 4, "step_name": "Enter credit memo header", "action": "Enter the credit memo number and credit memo date", "test_data": "CM-2026-08421 / 12-Aug-2026", "expected_result": "Header accepts values within an open accounting period", "validation_type": "action" }, { "step_number": 5, "step_name": "Reference original invoice (if matched)", "action": "Enter the reference invoice number to link the credit to an existing invoice", "test_data": "INV-2026-10233", "expected_result": "System retrieves the invoice's supplier, currency, and open balance for validation against the credit", "validation_type": "action", "note": "Skipped for unmatched/standalone credit memos" }, { "step_number": 6, "step_name": "Enter credit line(s)", "action": "Enter one or more credit lines with description, quantity or amount, and account distribution", "test_data": "Item line, Qty 25, -1,250.00", "expected_result": "Line amount is captured as a negative/credit value against the correct account", "validation_type": "action" }, { "step_number": 7, "step_name": "Apply tax classification", "action": "Select or confirm the tax classification code for the credit line", "test_data": "STANDARD_REVERSE", "expected_result": "Tax is calculated and reversed proportionally to the credited amount", "validation_type": "action" }, { "step_number": 8, "step_name": "Review distributions", "action": "Review or adjust the distribution accounting combination generated for the credit line", "test_data": "01-000-2210-0000-000", "expected_result": "Distribution mirrors or appropriately offsets the original invoice's accounting", "validation_type": "action" }, { "step_number": 9, "step_name": "Validate credit memo", "action": "Submit the credit memo for validation", "test_data": "", "expected_result": "Validation completes with no holds; status changes to Validated", "validation_type": "action" }, { "step_number": 10, "step_name": "Submit for approval", "action": "Submit the validated credit memo into the approval workflow", "test_data": "", "expected_result": "Credit memo routes to the configured approver based on amount and business unit rules", "validation_type": "action" }, { "step_number": 11, "step_name": "Approve credit memo", "action": "Approver reviews and approves the credit memo", "test_data": "", "expected_result": "Approval status updates to Approved and the document becomes eligible for accounting", "validation_type": "action" }, { "step_number": 12, "step_name": "Create accounting", "action": "Run Create Accounting for the credit memo", "test_data": "", "expected_result": "Accounting entries post: debit AP Liability, credit Expense/Charge account, reversing the invoice's original entry proportionally", "validation_type": "action" }, { "step_number": 13, "step_name": "Confirm available credit", "action": "View the supplier's account balance to confirm the credit is available for application or refund", "test_data": "", "expected_result": "Credit memo amount appears as an open credit balance against the supplier", "validation_type": "action" }, { "step_number": 14, "step_name": "Validate business outcome", "action": "Confirm the credit memo correctly reduced the supplier's payable balance and, where matched, the referenced invoice's open amount", "test_data": "", "expected_result": "Supplier balance and referenced invoice balance reflect the credited amount accurately, with no unexpected variance", "validation_type": "business_assertion" } ], "expected_results": [ "Credit memo is created with a valid negative/credit amount against an active supplier and site", "Unmatched credit memos post correctly using manually entered distributions", "Matched credit memos correctly reduce the open balance of the referenced invoice, whether full or partial", "Tax is recalculated or reversed in proportion to the credited line amount", "Distribution accounting reflects an appropriate offset to the original expense or liability account", "Multi-currency credit memos inherit the correct currency and conversion rate context", "Credit memo validates without unintended holds and routes through the standard approval workflow", "Accounting entries post correctly, reversing the proportional share of the original invoice's accounting impact", "The resulting credit is available for application against a future payment or for refund processing", "Partial credits leave the remaining unmatched balance of the invoice line intact and unaffected" ], "validation_checkpoints": [ "Invoice Type field correctly set and locked to Credit Memo", "Credit amount is captured as negative or credit-typed, not a duplicate positive invoice", "Reference invoice, when provided, belongs to the same supplier and has sufficient open balance", "Credit memo currency matches the reference invoice currency where matched", "Tax classification and calculated tax amount are consistent with the original transaction's tax treatment", "Distribution combination is valid in the current chart of accounts and open period", "Validation completes with no unresolved holds for a clean positive scenario", "Approval workflow routes to the correct approver tier based on credit amount", "Create Accounting produces balanced, correctly signed journal entries", "Supplier account balance reflects the reduced payable amount post-accounting", "Referenced invoice's open balance decreases by exactly the matched credit amount", "Audit trail retains linkage between the credit memo and its reference invoice, if any" ] }