The following steps should be taken to return a sale when the product or service is non-inventory and the customer has not paid for the sale.
Summary of Steps:
- Create a Credit Memo for the unpaid balance of the billing. The process to create a credit memo is almost the same as creating a billing. The main difference is that when the billing lines are entered, they are entered with negative values. This will automatically change the invoice to a credit memo.
- Apply the credit memo to the billing by clicking the "Apply Credit Memo" button on the billing header.
- Enter the amount to apply to each open billing.
- Click "Save"
- The transactions created when posting a credit memo are a debit to the GL Revenue Account selected on the billing line, and a credit to the AR Control Account.
- Tip - To associate the credit memo with an original billing, place "Credit Memo for Billing number xxxxxxxxxx" in the Proprietary Billing Number field.