A credit memo is entered in Order Entry so it will reflect in invoice history, Accounts Receivable reports, Inventory reports and Sales Analysis reports. It is possible to enter a credit invoice in the A/R module, but it won’t affect anything but the customer’s account.

Credit memos are applied using Cash Receipts Data Entry on the Cash Receipts Menu. Following are the step by step instructions:

Enter deposit date -> Enter a deposit code or can be left blank
The deposit amount will always be zero
Type the customer code or ? to insert a customer from the display window
The check number can be used as a reference (i.e. APPLY, CREDIT)
ABA field can be a memo or left blank -> Debit cash amount will always be a zero

Notes:

The invoice and credit memo numbers will display on the bottom portion of your screen. Press the Enter key for multiple screens.

Select the credit memo in the invoice number field -> Bypass the discount field
Press the Enter key to accept the amount shown or you may apply a partial amount of the credit memo

Type the invoice(s) numbers you are paying with this credit memo or type AUTO to apply the credit to the oldest invoices on account.