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.
Summary of Steps:
  1. 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.
  2. Apply the credit memo to the billing by clicking the "Apply Credit Memo" button on the billing record.
  3. Enter the amount to apply to each open billing.
  4. Click "Save"
  5. 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.
  6. 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.
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