Background

You have the option of either creating a negative sale OR using the Credit Memo sales type.

Creating a Credit Memo

• Item Credit Memos
• Non-Item Credit Memos

To create a credit memo for an item sale (ie: an item return):

1. In the Sales command center open the Sales Register
2. Click the Returns & Credits tab at the top
3. In the lower right corner click on New Credit Memo
4. In the upper left area choose the customer
5. At the bottom of the window click the Layout button; select Item from the list
6. Indicate the number of items returned as a positive number
7. Click Record

Before you create a non-item credit memo you need to know which account you want to apply this credit memo against. Normally this would be an expense account. You can create this account by:

1. Go to the menu bar at the top of the screen and clicking "Lists"
2. Select Accounts from the drop down menu
3. Click the "New" button in the bottom left corner
4. Choose "Detail" in the upper left corner of the create account window
5. Pick a free Expense account number (6-XXXX) and hit tab
6. Enter an appropriate name (Bad Debt, Return, etc)
7. Click OK in the bottom right corner

To create memo for a non-item sale:

1. In the Sales command center open the Sales Register
2. Click the Returns & Credits tab at the top
3. In the lower right corner click on New Credit Memo
4. In the upper left area choose the customer
5. At the bottom of the window click Layout and choose Service
6. In the Description column, enter a description of the credit
7. Select the account you created above
8. Enter the credit amount as a positive value
9. Click Record
10. The credit is listed in the Returns & Credits area of the Sales Register

Apply a Credit Memo to a Sale

To apply a credit to a sale:

1. In the Sales Register, click the Returns & Credit tab
2. Select the credit memo and click Apply to Invoice
3. Apply the credit to any open invoices. You can apply the entire credit or only a part of the credit.

Issue a Refund from a Credit Memo

To issue a refund from the credit memo:

1. In the Sales Register, click the Returns & Credit tab
2. Select the credit memo and click Pay Refund
3. Choose the correct bank account you want to pay out of in the upper left
4. Enter the proper date for the check and the check number
5. Record the check