What is a Credit Memo?

A Credit Memo can be issued to a Customer, typically in the scenario of a Return or a Damaged Item. The Customer can then use that Credit for future Orders or request a Refund. There are two modules that can be used to create a Credit Memo: Invoice Credit Memo and Credit Memo. See this article to determine which one to use for what scenarios.

The Credit Memo module

Use the ‘Credit Memo’ module to create or edit existing Credit Memos.

Credit Memo Header – Sales

  • Sale Store: This is the Store from which the Credit is being processed. Any Inventory Items will be Returned to this Store.
  • Customer: Type a Name, Phone number, or email here to select a Customer for the Credit Memo. Click for more details on the selected Customer.
  • Ref No: A reference number can be entered here.
  • Return Type: This lets you choose among 2 types of RMA processes for the returned goods. “Direct” will ask you for a location when you add an item, so you will have to put away the item immediately. “Warehouse” will give you the option of generating an ASN for putting away the goods into the warehouse at a later time. Choose the option which best suits your warehousing workflow.
  • Date: This is the date the customer returned the goods for credit.
  • Select Account: Choose the AR account.
  • Project/Class: Select a project or class to associate this credit memo with.

Credit Memo Details

The Options button gives the feature below:

  • Batch Re-stocking Fee: Use this feature to apply the same re-stocking fee to the selected items on the credit memo.

The descriptions below refer to the column headings of the item:

  • Item Type: Choose the item type of the item that you are adding.
  • Item Number: Choose the item number of the item that you are adding.
  • R Code: Choose the item return code of the item that you are adding.
  • Return Notes: Add any return notes for the item here. Typically these are notes about the item (damaged, missing parts, etc.).
  • Re-stocking fee: An absolute or percentage re-stocking fee for the item.
  • Qty: Enter the quantity of the item that you are adding.
  • Tax: Select the tax code of the item you are adding.
  • Rate: Enter the rate of the item you are adding.
  • Project/Class: Select a project or class to associate this credit memo line with.
  • Memo: A memo for Credit Memo can be written here.
  • Exchange Rate: If the Credit Memo is for a foreign Customer, the exchange rate can be edited here.

Video Tutorials:

Related Articles

Was this article helpful?

Related Articles