Entering a credit memo for a customer

You can apply credit memos against existing invoices and service charges. Enter a credit memo if no product is involved. If a customer is returning inventory to you, enter a Return Merchandise (RM) transaction in Sales Order Entry so that product records are updated.

  1. Select Customer > Entry > Customer Transaction.
  2. Click OK to open a journal.
  3. Specify the customer number, and then select Credit Memo in the Type field.
  4. Indicate the transaction type and number to which this credit applies.
  5. Click Next.
  6. Specify a new number for the credit memo in the Invoice field.
  7. Specify the amount of the credit.

    The amount of the invoice or service charge that you previously specified is displayed in the Amount field. You can specify an amount less than or equal to the remaining amount of the transaction to which you are applying the credit.

  8. Specify the invoice date.
  9. Accept or change the terms.
  10. Select Sales Year To Date to update the Sales Year to Date amount on the customer’s record.
  11. Specify a reference.
  12. Click Next to display the scheduled payments for the selected transaction.
  13. In the Apply Amt field for the line to which to apply the credit, specify the amount to apply to this payment.
  14. Optionally, specify a different discount amount.
  15. Repeat the previous steps until the entire credit is applied, and the amount proof and discount proof are both 0.00.
  16. Click Continue to display the General Ledger Distribution information in the grid.
  17. To specify offset accounts and amounts, click Add.
  18. To apply the amount by percentages or to apply the entire proof amount, click the appropriate button.
  19. When the proof amount is 0.00, click Save.
  20. Close the window to exit the function and close the journal.
Related topics
  • Opening and closing a journal
  • Customer transaction types