You can enter credit memos for your customers, or review, edit, void, or delete existing credit memos from the Credit Memo screen.
If a customer has not paid an invoice, you can enter a credit memo for the full or partial amount of the specific invoice. If you do not apply the credit to a specific invoice, you can either apply it to the next invoice entered for the customer or use it to issue a refund.
You can also void or delete a credit memo for a customer from the Credit Memo screen. Voiding a credit memo creates a reversing entry, and a record of the credit memo is retained. Deleting a credit memo purges it from the system.
Note: You can set an option to apply credit memos on customer invoices by default in the Invoice Specification section of the Sales Preferences screen, or specify to do so manually.
To enter, view, or edit a credit memo for a customer:
1. Select Invoice from the Sales menu to open the Customer Invoice screen, then click the Credit Memo button to open the Credit Memo screen.
Note: You can click the Invoice button to return to the Customer Invoice screen, or click the Estimate button to open the Customer Estimate screen
2. Enter the customer's name in the Bill To field and select the customer from the list that appears.
The credit memo fields appear, with the customer's information added and a memo number automatically assigned in the Credit Memo # field.
Alternatively, click the Recent Credit Memos button and select an existing credit memo to edit or review from the drop-down list.
The selected memo appears. If the memo you selected is from a closed year, you cannot edit it.
3. (Optional) Click the Void or Delete buttons to remove the credit memo, if necessary.
Voiding a credit memo creates a reversing entry, and a record of the credit memo is retained. Deleting a credit memo purges it from the system.
4. (Optional) Select the appropriate department from the Select Department drop-down list, , if available.
The Select Department list does not appear if you have not defined departments for the company. You can assign transactions to different departments to help you to analyze income and loss for different profit centers within a company
5. Verify or change the Date or Credit Memo # in the fields in the Credit Memo Details panel.
By default, the Date field reflects the current system date and the Credit Memo # is incremented from the last credit memo you entered.
You can enter the number of a previously-entered credit memo in the Credit Memo # field to view it.
6. Use the columns in the Details panel to enter or verify the product or service to which to apply the credit and enter the quantity, or enter a description of the credit and the amount to be credited.
If you select a Product/Service from the drop-down list in the Product/Service column, the Description, Unit Price, Account, and Department columns are automatically populated in the appropriate columns.
The Amount column, indicating the amount of the credit, is automatically calculated based on the Unit Price and the Quantity you enter, and the Sub-Total field, in the Totals panel, reflects the total of all of the figures in the Amount column for all line items.
7. (Optional) Enter the percentage or amount of any discount to apply in the Discount column, and specify whether the figure in the Discount column is a dollar figure or a percentage in the Discount Type column.
The discount you enter is automatically applied to the figure in the Sub-Total field when you click outside the Discount column.
8. (Optional) Select the appropriate sales representative from the drop-down list in the Sales Representative field and use the Notes field to enter any additional information for the credit memo.
The Notes field has a 300 character limit.
9. Select a related invoice from the drop-down list in the Apply To field.
If the customer has unpaid invoices, you can specify the invoice to which to apply the credit.
10. Enter freight or shipping charges to be credited in the Freight field in the Totals panel, and enter or verify the rate that appears in the Tax Rate (%) field.
The Total field reflects the sum of the Sub-Total, Freight, and Tax fields.
11. Click Save, and click Print to print or save the credit memo as a PDF file, or Email to email the credit memo to the customer.
Once you save your entries, you can click Add to enter another credit memo, or click List to open the Invoice List screen to review a list of all open invoices and credit memos from which you can select an invoice or credit memo to open for review or editing.