Create a New Credit Memo

If a customer sends back goods or you need to credit a payment difference or adjust the customer balance for any other reason, you can create a new credit memo (under Sales - More - Credit Memos - New Credit Memo) that can then be applied to an open invoice in your customers balance.

Please note: if goods are returned, you also need to generate an inventory entry manually. The credit memo does not create any inventory movements!

 

Convert Invoice to Credit Memo

You can directly convert an invoice into a credit memo by choosing convert invoice to credit memo in Sales - More - Credit Memos - [︙] button - Convert Invoices to Credit Memos.

Please note:

If you decide to convert invoices that contain inventory tracked products, the credit memo will not affect any inventory entry. If the customer returns an item that needs to be put back on stock, you must create a manual inventory entry in Inventory - More - Inventory Entries - New Inventory Entry.

Using a credit memo, please note that on the accounting side, there will not be any correction made neither in inventory, nor in CoGs. Those have to be done manually using a manual accounting transaction.

Converting an invoice into a credit memo will set your invoice to "cancelled", but not "settled". Cancelled invoices no longer show in A/R aging nor in unpaid invoices.

If the invoice is unpaid, the credit memo will show as paid. If invoice was paid however, the credit memo would be unpaid, and so you would either need to apply it to another invoice or pay it accordingly (see below).

 

Apply a Credit Memo to an Invoice

Should you need to apply a credit memo to an invoice, please open your invoice and go to page 2. On top in the installment line you will find the button "use a credit note" that lets you select the credit memo to be applied as a payment to that invoice.

 

 

Pay a Credit Memo out to your Customer

Open your credit memo, proceed to page 2. There you can turn the installment into a payment (Click "Issue Refund"). Set the correct date and select the paying bank account.

 

 

A customer returns goods, how do I proceed?

If a customer returns a product, we recommend to create a credit memo in Sales - More - Credit Memos - New Credit Memo.

Link the customer and add the returned product into the product line, set up a discount if needed and make sure, you also have payment terms linked.

To register the returned product back on stock, please then create an inventory entry in Inventory - More - Inventory Entries - New Inventory Entry . It is recommended to mention the customer and/or the credit memo code to be able to identify the entry later.

You will be able to use the credit memo as a payment to an open invoice. If you do so, please open the invoice and proceed to page 2, click the "use a credit note", select the one you need and validate the "payment" using DONE.

Should you wish to pay out the credit memo, please register the according payment and the bank on page 2 of your credit document.