How To Create and Apply Credit Memos

Create and apply Credit Memos with Connected Business using the ERP, Ecommerce, or Point of Sale.

Connected Business has two steps to the Credit Memo process. The Credit Memo is created for a specific customer and then the credit created for that customer is applied to a specific invoice or multiple invoices.

Creating Credit Memos

Connected Business has two types of Credit Memos: 1) Credit Memos linked to Returns that are connected to Inventory and 2) general Credit Memos not linked to Returns or to Inventory.

Credit Memo Linked to Inventory

If an RMA is created for a potential Return, the Credit Memo Form may be accessed by clicking on the “Convert to Credit Memo” in the Toolbar of the RMA Form.

 

After clicking on the Convert to Credit Memo Button, the following form displays.

 

On the form you checked the two columns in the middle of the screen: Good and Defective. Make the correct amount of each is entered. The number of good items will be returned to zone 1 of your location so you can sell it and the number of Defective items will go to another zone so it will not be available to sell.

When you click on Save, the following popup screen will display:

 

Click on the appropriate button. If you select Create Credit a credit will be created for that customer that you may apply a portion or the full amount of the credit to one or multiple open invoices for that customer.

If you select Apply to Unpaid Invoices; a pop-up screen will display that lists the open invoices for that customer. Click on the desired invoice and the credit will be applied.

If you select Create Refund; a payment screen will display. Make sure the correct payment method is displayed.

Process the refund.

You can also create a Credit Memo directly without an RMA. To create the Credit Memo without an RMA do the following:

Access the Customer Module and select the RMA/Credit option

Choose the New Credit Memo from the drop-down list

The Open RMA tab is displayed, if you do not wish to use an RMA click on one of the other three tabs: Posted Invoice, Ship to Customer, or Bill To Customer.

The Credit Memo Form will display and you may process the same as above. If you selected Ship to Customer or Bill to Customer, you will need to enter the inventory items in the middle of the screen.

At this point the process is the same as for the Credit Memo from the RMA.

Creating Credit Memos that are not linked to inventory

When creating Credit Memos that do not link to inventory, use the Batch Menu option from the Customer Module. This option allows you create a credit for any reason and apply it to any chart of account code. After the credit is created, you may apply it to any posted invoice.

To create a Batch Credit Memo, do the following:

Access the Batch option from the Customer Module and select New Batch Invoice/ Credit

The Ship to Customers tab is displayed, if you wish to use the Bill to Customer tab, select it.

Select the desired customer and the Batch Form will display.

Make sure you change the Type from Invoice to Credit Memo.

Enter the Net Total of the Credit Memo

Click on the Reason drop down and enter a reason if desired

Under GL Account select the desired Chart of Account Code

Click on Save and the credit is created.

Applying Credit Memos

In Connected Business the process to apply a credit to an invoice is the same regardless of whether the Credit Memo is linked to Inventory or not linked to Inventory. When applying a credit to a customer invoice the process is different if the invoice is posted as opposed to unposted invoices.

Applying a Credit to an Up-Posted Invoice

When applying a credit to an un-posted invoice you use the Add Payment on the toolbar of the invoice form.

 

After you click on the Add Payment Button the following form will display:

 

Click on the Apply Credit button and the following will display:

 

Click on the down arrow for Credit Code and the following screen will display:

 

Double click on the desired Credit (in this case there is only one) and the following screen will display:

 

All the information for that Credit Memo is entered. Click on OK and the credit is applied.

Now the Payment Form for that invoice shows two credit memos (one was applied earlier).

 

Apply a credit to a posted invoice

If you wish to apply a credit to an invoice that is posted, you use the receipt option from the Customer Module Menu. To apply a credit to a posted invoice, do the following:

From the Customer Module click on the Receipt option and select New Receipt

Click on the desired customer

The Receipt Form will display



Prior to entering the amount of the payment, double click on Apply Credits in the row for the desired invoice in the lower portion of the screen. The following screen will display:

As you can see, the only credit with an amount available is CCNOTE-000032

Click in the box next to CCNOTE-000032

The credit has been applied to that invoice and you can now enter the amount of the customer’s payment. You must enter at least $1 for the payment amount.

The available credit memos are displayed, click on the desired credit memo.

 

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