An (Invoice) Credit Memo is a Credit that is given to a Customer. This is usually created when an Item is returned. It can be created on an existing Invoice in the system (Invoice Credit Memo) or it can be created on its own (Credit Memo) – see this article to determine which one to use for what scenarios. This credit can then be applied to a future Invoice for that customer or it can be refunded.
Invoice Credit Memo Status
- Open: Newly created Credit Memos have Open status, where no amount has been applied or refunded.
- Partially Applied: Some amount of the Credit Memo has been applied to Invoice(s).
- Partially Refunded: Some amount of the Credit Memo has been refunded and none has been applied.
- Applied: All of the amount has been applied to Invoice(s).
- Refunded: All of the amount has been refunded to the Customer.
The Invoice Credit Memo module:
Use the Invoice Credit Memo module to create or edit existing Credit Memos.
Invoice Credit Memo Fields
Credit Memo Header – Main
- Invoice: Click this button to retrieve the Invoice you want to Credit. It will show the following fields:
- Sale Store: Select the sale store of the invoice you’re trying to credit.
- Customer: Search and select the customer of the invoice you’re trying to credit.
- Search by: Select the criteria you want to search to find the invoice (SO#, Invoice#, etc.).
- Invoice Number: Search here and select your invoice.
- Return Inventory Store: Choose the store you’re are crediting the goods to.
- 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 options which best suits your warehousing workflow.
- Customer: The customer this Credit Memo is for. Click for more details once a Customer is selected.
- Date: This is the date the customer returned the goods for Credit.
- Select Account: Choose the AR Account.
- Project/Class: This field will display the project or class of the invoice that is retrieved.
Credit Memo Header – Discount Returns
- Discount Available: This field retrieves all the discounts that have been applied on the invoice through invoice payment(s).
- Discount Amount: This field automatically calculates the discount amount to return based on the Discount Available and goods that have been returned.
- Discount Account: Choose the Discount Account here.
Credit Memo Header – Shipping Returns
- Shipping Available: This field retrieves the shipping amount available to return, based on the invoice.
- Shipping Amount: Enter the amount of shipping to return here.
- Shipping Expense Account: Select the shipping expense for returns here.
Credit Memo Details
- Add Lines (Alt+A): Clicking this button opens a new window that shows items from the retrieved invoice. From here you can add lines to the Credit Memo.
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: This field will display the project or class of the invoice line that has been added.
- 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.