Credit Memo Screen - How To's

How to Create a Credit Memo

• Scenario 1: Customer returns an item(s)

• Scenario 2: If you wish to give your customer a store credit:

How to Print, Email, and Download Invoice/Credit Memo Report(s) & Record(s)

• On the Invoice List screen:
• Select the record(s) by checking the box(es) .
• Click the  button to Print and  to download (in Excel form).
• There is also an option to Share  record(s) and this feature will be available in the future.
• For Invoice/Credit Memo Reports, go to Main Menu Bar > Reports > Invoices/Credit Memos, create your Report (*see previous instructions) then click on the  button (upper right). 
• Notes: 
• Printed Credit Memo reports have been updated for clearer wording:
• “Amount Received” is now labeled “Credit Applied/Used”
• “Balance Due” is now labeled “Credit Available”
• The Print Preview popup screen will appear. 
• DOWNLOAD COPY: Click on  button (upper right) to download the Report. Save in your PC.
• EMAIL COPY: Click on  button (lower right) to send a copy of the Report through email. Create the body of the Email and input other necessary details on the left side of the Email popup screen. Click on  button (lower right).
• PRINT COPY: Click on  button (upper right) to print the Report. Adjust Print Settings then click on  button (lower right).

Comments (tab)

Input any comments or notes related to the particular Credit Memo.

Payment Info (tab)

Article coming soon.

Other Info (tab)

This tab contains other important information about the Credit Memo such as:

• Created By (Note: When a Credit Memo is created from an invoice, the system will now automatically record the logged-in user in both the Created By and Entered By fields.)
• Created Date/Time
• Originally Created In

Other (tab)

Article coming soon.

NOTE: Ensure that the 'Amount Received' located at the top right corner is zero.

Common Scenarios

How do I create one or more Credit Memos by returning a single item after the invoice has already been paid (using the Invoice screen)?

Follow these steps to create a Credit Memo for one or more items after an invoice has been paid:

1. Open the Paid Invoice
• Go to the Invoice screen and open the invoice that has already been paid.
2. Enable the "Qty Return" Column (if not visible)
• In the line items section, look for the "Qty Return" column. If you don't see it:
• Click the gear icon at the top right above the line items.
• Under Column Filters (Line 1), check the box for "Qty Return" to make it visible.
  
3. Enter the Quantity to Return
• In the Qty Return column, enter 1 for the line item you wish to return (since you are returning a single item).
  
4. Respond to the Stock Return Prompt
• A prompt will appear asking:
• “Have you already received this item back into stock? Do you want to automatically RETURN this item back to stock when the Credit Memo is created? Please type YES or NO.”
• Type YES if the item has already been received into stock, or NO if it has not.
  
5. Create the Credit Memo
• Click the Create Credit Memo button located near the bottom center of the Invoice screen to proceed.
  
6. Choose Return Scope
• When prompted: “Return Entire Invoice? If you click Yes a Credit Memo will be created for the entire Invoice.”
• Click NO, since you are only returning a single item.
  
• Next, you will see: “Return Selected Items? Do you want to return just the items that have a Qty > 0 in the Qty Rtn field?”
• Click YES to proceed.
  
7. Review and Save the Credit Memo
• The Credit Memo will open in a new tab.
• Confirm that the correct line item(s) appear on the Credit Memo.
• Click Commit Line Item, then click Save.
  
8. Verify the Line Total Based on Return Status
• If the item has already been returned, the Line Total will reflect the amount originally paid by the customer.
• If the item has not yet been returned, the Line Total will show $0.00. Once the item is returned, the total will update accordingly.
  
9. Reference the Credit Memo
• Use the Credit Memo number as a reference for the return and the credit issued to the customer.
  

How do I create one or more Credit Memos by returning a single item before the invoice is paid (using the Invoice screen)?

Follow the steps below to process a return and generate a Credit Memo for an unpaid invoice:

1. Open the unpaid invoice
• Navigate to the invoice where the return needs to be processed.
2. Enter the Qty Rtn
• In the Qty Rtn column, enter the quantity to be returned for the specific item.
• Respond to the prompt when asked whether the item has already been returned to stock, respond accordingly (type YES or NO).
• Click "Commit Line Item", This saves the changes to the item being returned.
3. Click "Create Credit Memo"
• Respond to the following prompts:
• "Return Entire Invoice?" – Select NO, since only one item is being returned.
• "Return Selected Items?" – Select YES, to return only the items with a quantity greater than 0 in the Qty Rtn field.
• "Customer has not paid you yet." – Type YES to confirm.
4. Review and Save the Credit Memo
• The Credit Memo will open in a new tab.
• Confirm that the correct line item(s) appear.
• Click Commit Line Item, then Save.
5. Verify the Line Total Based on Return Status
• If the item has already been returned, the Line Total will reflect the item’s full value.
• If the item has not yet been returned, the Line Total will display $0.00. It will update once the return is completed.
6. Reference the Credit Memo
• Use the Credit Memo number as the reference for the return and the credit issued to the customer.

How do I create a Credit Memo for a returned item before the invoice is paid, without issuing credit (by zeroing out the price to keep a paper trail)?

Follow these steps to process a return and generate a Credit Memo without issuing actual credit to the customer. This method maintains a paper trail for inventory and return tracking when no payment was received for the item.

1. Open the invoice
• Navigate to the unpaid invoice for which the return will be processed.
2. Zero out the price for the item
• Apply a 100% discount on the line item or change the Net Price to 0.00.
• If you do not see these columns, click the gear icon in the upper-right corner above the line items to adjust the visible columns.
3. Enter the Qty Rtn
• In the Qty Rtn column, enter the quantity of the item being returned.
• When asked "Have you already received this item back into stock?", respond with YES or NO, depending on the situation.
4. Click "Commit Line Item"
• This saves the changes to the item being returned.
5. Click "Create Credit Memo"
• Respond to the prompts:
• "Return Entire Invoice?" – Respond YES or NO depending on the situation.
• If YES, confirm whether the items are being tagged as returned.
• If NO, you will be prompted:
• "Return Selected Items?" – Select YES, to return only the items with a quantity greater than 0 in the Qty Rtn field.
6. Review and Save the Credit Memo
1. The Credit Memo will open in a new tab.
2. Confirm that the correct line item(s) appear.
3. Verify that the Total Amount on the Credit Memo is $0.00, since no credit is being issued.
4. Use the Credit Memo number as a reference to maintain a clear audit trail.
5. Click Commit Line Item, then Save.

How do I create one or more Credit Memos by returning all items on an invoice after the invoice has been paid (using the Invoice screen)?

If a customer returns all items from a fully paid invoice, you can generate a Credit Memo to issue credit for the return. Follow the steps below:

1. Open the paid invoice
• Locate the invoice in the system that needs to be fully returned.
2. Enter the quantity to return for each item
• If it is not visible, click the gear icon (above the line items table) and enable the Qty Rtn column from the column filter.
• In the Qty Rtn column, enter the full quantity originally invoiced for each line item.
3. Respond to the stock return prompt
• A prompt will appear:
• “Have you already received this item back into stock? Do you want to automatically RETURN this item back to stock when the Credit Memo is created? Please type YES or NO.”
• Respond accordingly.
• After responding, click Commit Line Item to save the changes on the line item.
4. Click the "Create Credit Memo" button
• The button is located at the bottom center of the invoice screen.
• Respond to the following prompts:
• “Return Entire Invoice?” — Select YES since all items are being returned.
• “Do you want to automatically RETURN this item back to stock when the Credit Memo is created?” — Type YES or NO depending on whether the items have been physically returned.
5. The Credit Memo will open in a new tab
• Review the document to ensure all line items are listed with the correct return quantities.
6. Add a reason for the return
• In the Reason column, select the appropriate reason from the dropdown list: Customer Refused, Damaged, or Wrong Item.
7. Click "Commit Line Item", then click Save
• This finalizes the Credit Memo.
8. Verify the Line Total
• If the items were marked as returned, the Line Total should reflect the full amount originally paid by the customer.
9. Use the Credit Memo as reference
• The Credit Memo number can be shared with the customer or used to apply credit to future invoices.
  

How do I create one or more Credit Memos for a returned item that is received but not restocked (e.g., damaged or broken)?

If a customer returns an item that is broken or damaged, and you want to issue credit without returning the item to stock, follow the steps below to create a Credit Memo using the Invoice screen:

1. Open the invoice
• Locate and open the invoice where the item being returned is listed.
2. Enter the quantity to return for the specific item
• If not visible, click the gear icon above the line items and enable the Qty Rtn column from the column filter.
• In the Qty Rtn column, enter the number of units being returned (e.g., 1).
3. Respond to the stock return prompt
• A prompt will appear:
• “Have you already received this item back into stock? Do you want to automatically RETURN this item back to stock when the Credit Memo is created? Please type YES or NO.”
• Type NO since the item is damaged and should not be returned to inventory.
• Then, click Commit Line Item to save the changes to the line item.
4. Click the "Create Credit Memo" button
• Located at the bottom center of the invoice screen.
• Respond to the following prompts:
• “Return Entire Invoice?” — Click NO since only one item is being returned.
• “Return Selected Items? Do you want to return just the items that have a Qty > 0 in the Qty Rtn field?” — Click YES.
5. The Credit Memo will open in a new tab
• Review the document to confirm that the correct line item is included.
6. Select the reason for return as "Damaged"
• In the Reason column, select Damaged from the dropdown.
7. Enter the returned quantity
• In the Returned column, enter the number of items being returned (e.g., 1).
• When prompted “Return item to stock?”, select NO since the item is damaged and will not be returned to inventory.
8. Click Commit Line Item, then click Save
• This will finalize the Credit Memo without restocking the item.
9. Use the Credit Memo number for reference
• Provide the Credit Memo number to the customer as proof of the credit issued.