A credit memo is an invoice with a negative total amount.
Financial credit memos are entered in your accounting system
If you issue a financial credit memo to a customer, you can enter it directly in your financial accounting system. A financial credit memo is one that does not include any inventory items. An example of a financial credit memo is one used to adjust a customer account balance for an over or under-payment.
Inventory credit memos are generated in DBA
When a credit memo includes an inventory item, such as a returned item, the credit memo must be generated in DBA. The returned item is entered with a negative order quantity, which results in a negative price and enables the item to be returned to stock. The order is picked, shipped, and invoiced in the normal fashion to generate the credit memo.
How are credit memos created?
When you print an invoice with a negative total amount, the printed title on the invoice changes from the Your Invoice Name to the Your Credit Name specified in the Main Setup screen.
