Servicing side Credit Memo Use Case

Based on the Oracle Documentation provided to us, when a Buyer pushes a Refund Adjustment receipt, and the seller Pulls the negative receipt, a Credit memo should be created on the Seller side AP module. as in the delivery performance should be adjusted using a refund activity - and an AP Credit Memo should be created for the same Supplier/Customer. I am not sure why a positive AP Invoice is getting created.

Can any one confirm if this use case is working for them and the Credit Memo is getting created? or if there is a different use case that creates this Credit memo?