Overview
The following steps should be taken to return a sale when the product or service is non-inventory and the customer has partially paid for the sale.
Steps
- Create a Credit Memo for the unpaid balance of billing. The process to create a credit memo is almost the same as creating a manual 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 record.
- Enter the amount to apply to each open billing.
- Click Save.
- Create an Account Payable to the customer for the amount originally paid and to be refunded. The amount to refund on the account payable line should be positive.
- Create a Cash Disbursement by following the standard instructions for creating a single or batch cash disbursement(s).
Please Note
- 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 - In the Payee Reference field of the Accounts Payable, indicate the Billing and reason for the refund to the customer. This explanation will be printed on the check or if a credit card transaction can be useful in reconciling the account.
- Tip - To associate the credit memo with an original billing, place "Credit Memo for Billing number xxxxxxxxxx" in the Proprietary Billing Number field.