Customer Credit Memos
A credit memo is a transaction that decreases the amount a customer owes you.
You can use a credit memo to reverse a charge you billed to a customer. For example, a customer returns part of an order after you've issued an invoice. Enter a credit memo to decrease the amount of this open invoice.
If a customer receives a credit memo after having paid an invoice, this memo can be applied to any of the customer's open or future invoices.
A credit memo created from a return authorization has no impact on inventory; however, a stand-alone credit memo does impact inventory.
To use credit memos, you must maintain customer balances using the A/R (Accounts Receivable) feature. An administrator can enable this feature at Setup > Company > Setup Tasks > Enable Features (Administrator).
To enter a credit memo, go to Transactions > Customers > Issue Credit Memos (Administrator).
After you have applied a credit memo, you can review how it was applied by viewing the credit or a customer payment. For more information, read Applying a Customer Credit Memo.
If you determine that item costing for the returned item does not reflect the exact cost from a linked sales transaction, please contact Customer Support.