Staff users can manually create credit memos and write-offs from the Invoice record if the Invoice Overpayment Credit Memo and Invoice Write-Off Limits fields are undefined on the Business Group.

Credit memos can only be used as a form of payment for invoices. Credit memos cannot be used to pay a Sales Order. When the customer is accidentally overcharged, a credit memo can be issued.

Follow these instructions for creating a Credit Memo for a check submission without a corresponding invoice to apply it to.Creating a Manual Credit Memo

  1. Navigate to the Credit Memos tab.

  2. Click New. The New Credit Memo modal will open.

  3. Type the appropriate Account for the Account field.

  4. Type the appropriate Contact for the Contact field.

  5. Select Account or Contact from the Entity dropdown menu. This designates whether the Credit Memo is added to the Contact or the Account.

  6. Type the appropriate Business Group in the Business Group field.

  7. Select Draft from the Status dropdown menu.

  8. Type the Amount for the Credit Memo in the Amount field.

  9. Type the Debit Account for the Credit Memo in the Debit Account field.

    1. If the Credit Memo will be used to record money received but staff do not know which Invoice to apply the payment to, identify the cash/deposit GL Account.

    2. If the Credit Memo will be used to move money from a Sales Order or Invoice purchase to pay for the purchase of another Item, identify the Income Account on the Item originally purchased.

  10. Type the Credit Account for the Credit Memo in the Credit Account field. This will typically be the GL Account identified in the Business Group's field or Credit Memo Account.

  11. Select Save. The Credit Memo record page will open.

When you're ready to make the Credit Memo available:

  1. Check the Is Posted checkbox on the Credit Memo's Details section.

  2. Select Save.

The Status field will show as Posted. The Posted Date field will populated with Today. A transaction record and its Transaction Lines will be created.

Creating a Credit Memo from an Overpayment or a Write Off from an Underpayment

  1. Navigate to the Invoices tab in the eBusiness app and select the overpaid or underpaid invoice.

  2. On the Invoice Detail page:

    • Click the Create Credit Memo button for an overpaid invoice.

    • Click the Write Off Balance button for an underpaid invoice.

The page will reload to create the Write Off or Credit Memo. 

Once the Credit Memo is created, then the purchasing Customer Entity (either Account or Contact) will have an increase in the Outstanding Credit field equal to the amount of the credit.

Alternatively, once the Write Off is created, there will be an Adjustment Invoice Line and a corresponding Journal Entry.