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Credit Memo accounting generated Intercompany line for Tax event class

edited Sep 9, 2025 5:54PM in Receivables & Collections

Summary:

We are encountering an issue where, upon creating a credit memo and running the "Create Accounting" process, the system generates Intercompany accounting entries for tax. This behavior is unexpected because the original invoice associated with the credit memo did not have any Intercompany transactions.
Also the credit memo application lines are with different different combination (The one defined in transaction types setup).
We have custom accounting method and Journal entry rule set.
This issue we are not facing with the AR invoice accounting.

Request your expert help if you faced similar issue or know the solution.


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