difference between return orders(purchase and sales) and credit memos(sales and purchase)

[DenSter]

You can also create a Sales Credit Memo directly, and when you post that I believe it will automatically post a receipt to take care of inventory.

If you post a Purchase Credit Memo directly, and you post it, I believe it automatically posts a shipment to take care of inventory.

Is not quite correct.

You have an entry in the item ledger entries after posting. But no posted “document” (receipt or shipment). [at least until NAV4, maybe they changed that in 5; have not checked]

That’s exactly the part I wasn’t sure about. I did not check if there’s a posted document or not, but I am pretty sure that it does take care of inventory.