Question about AP Credit Notes coded to Projects

Hi,

I am trying to understand the PRC: Interface Supplier Costs process. We are running R12.1.3

Here we have an AP Credit Memo:

AP Type: Credit Memo

Invoice Amount: -151.20

The first distribution is coded to a VAT account, with a value of 0, and a "Type" of "Recoverable Tax"

The second distribution is coded to the Project Code, with a "Type" of "Nonrecoverable Tax", and a value of -151.20. The distribution line is matched to the Project and Task.

There are no distributions on the Invoice with a "Type" of "Item".

The AP Credit Memo has been Validated, Accounted and Paid.