A sales credit memo is typically used when a customer returns an item, but it can also be used to give a customer compensation such as a sales allowance and to correct an erroneous invoice.

If you use the invoicing features, it is a good idea to use credit memos too. They make it easier to manage your receivables.

To create a sales credit memo

  1. In the Search box, enter Sales Credit Memos, and then choose the related link.

  2. On the Home tab, in the New group, choose New. Create a new sales credit memo.

  3. Fill in the No. field.

  4. In the Sell-to Customer No. field, enter the number of the customer that returned the items.

  5. You can fill in the lines manually, or you have two options for filling the credit memo lines automatically:

    • You can use the Copy Document batch job to copy an existing document to the credit memo. Use this function to copy the entire document. It can be either a posted document or a document that is not yet posted.
    • You can use the Get Posted Document Lines to Reverse function to copy one or more posted document lines from one or more posted documents. This function’s purpose is to allow you to exactly reverse the costs from the posted document line.

  6. On the Invoicing FastTab, you can see the other information that was copied from the customer card. If you want to post the credit memo to a different customer than the one specified on the General FastTab, enter the number of that customer in the Bill-to Customer No. field.

  7. You can compare the credit memo to the original posted document, for example, in the Posted Sales Invoices window.

  8. In the Posting Date and Document Date fields, enter a date.

  9. On the credit memo lines, enter information about the items that have been returned or the sales allowance that will be sent.

    You can apply the credit memo line to a specific item ledger entry, job entry, or service entry, and you can assign item charges cost to it.

If the Return Receipt on Credit Memo field is selected in the Sales & Receivables setup, a posted return receipt will be created when the credit memo is posted.

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