Creating customer credits

Recording credits

You can create a customer credit note in the following ways:

■	Reverse an existing sale. Use this method if the customer has paid for the entire sale.

■	Manually create a credit. Use this method if you are crediting the customer for part of a sale.

To reverse a sale

Before you can reverse an invoice, the transaction must be unchangeable, that is, the Transactions CAN’T be Changed; They Must Be Reversed option must be selected in the Security tab of the Preferences window.

1	Find and open the invoice. For more information about finding invoices, see ‘Finding a transaction’ on page 215.

2	Go to the Edit menu and choose Reverse Sale. A credit note appears in the Sales window. Note that the invoice amount is a negative amount.

3	If you want, you can make changes to the credit note (such as changing the date and memo), but you can’t change the accounts, amounts and quantities that are associated with the credit.

4	Click Record Reversal. A customer credit appears in the Sales Register window.

To manually create a credit for a non-item sale

Use this method if you want to credit the customer for a part of a non-item sale.

tip :  

Before you manually create a credit of this type for the first time, you need to have an account for tracking returns and allowances. Check your accounts list for an income account named ‘Sales Returns and Allowances’. If it doesn’t exist, you need to create it. For more information about creating an account, see ‘Set up accounts’ on page 29.

1	Go to the Sales command centre and click Enter Sales. The Sales window appears.

2	Type or select the customer you are creating a credit for.

3	Select the Invoice status from the drop‑down list in the top left corner of the window.

4	Click Layout and choose Miscellaneous, then click OK.

5	In the Description column, enter a description of the credit for your records.

6	Select the account to be credited. This is normally an income account called ‘Sales Returns and Allowances’.

7	In the Amount field, type the amount of the credit as a negative amount.

8	Click Record. A customer credit appears in the Sales Register window.

To manually create a credit for an item sale

Use this method if you want to credit the customer for part of an item sale.

1	Go to the Sales command centre and click Enter Sales. The Sales window appears.

2	Type or select the customer you are creating the credit for.

3	Select Invoice from the list in the top left corner of the window.

4	Click Layout and choose Item, then click OK.

5	In the Deliver column, enter the number of items being returned as a negative number. The costs of the items appears as a negative amount.

6	Click Record. A customer credit appears in the Sales Register window.

Related Topics

■	Settling credit notes