Credit Memos

Credit Memos

Credit Memo

A credit memo reduces the amount owed to your company and may be issued because the customer returned all or part of a product on an invoice. Credit Memos / Refunds may also be issued when there a pricing dispute, a marketing allowance, or other reason in which the customer will not pay you the full amount of the original invoice.

Recording a Credit Memo / Refund

  1. Navigate to Sales → Credit Memos.
  2. Choose the Customer from the drop-down list. (After choosing a customer, it will ask you to select an open Sales Invoice. Take note that you may or not may associate Credit Memo to a Sales Invoice. Just close the Invoice selection window if you don't want to associate the Credit Memo to an Invoice.)
  3. The Date, Location, and Number are auto-filled. Change if necessary.
  4. Click the Refund or Credit Memo toggle button.
  5. Enter a Reference #. (optional)
  6. Click the Shipping tab and change the Ship From and Ship To: fields, if necessary.
  7. Click the Accounting tab and change the Accounts Receivable Account, if necessary.
  8. Click the Memo tab and enter a memo. (optional) Ext. will print on on the Credit Memo and Int: is for internal use and will not print on customer documents.
  9. Click Add and add line(s) for each item returned or for which the credit memo is issued. Change the quantity to reflect the amount being returned or credited.
  10. Click the Sales Tax tab and choose a Sales Tax Rate.
  11. Verify and change (if necessary) the Quantity and Price.
  12. Click Save to save a draft or Post and Close to finish the Credit Memo.

Creating a Credit Memo in CustomBooks™
Credit Memos may or may not be associated with a sales invoice. To associate a credit memo with an invoice, start by navigating to the invoice and choosing Generate Credit Memo.

In this case, many of the fields on the new Credit Memo will be auto-filled from the Sales Invoice.
​

Accounting

Credit Memos Debit Income and Inventory and Credit Accounts Receivable and Cost of Goods Sold.

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