Create a Credit Memo for Returned Items

Use the One-Step Invoice Entry (RE) program to create a credit memo for returned items, to change the price, and to correct shipping charges. These credit memos affect inventory. You can also create a credit memo that does not affect inventory. See Background for other tasks that you can perform with this program and Road Map for work flow.

1. Click New, enter NEW, or enter # if you want the program to assign the next available sales order number. Use the Numbering System Setup (XOC) program to set up a sales order numbering scheme.

OR

Enter a unique identifier for the sales order you want to create. You can do this only if the Allow override? option is selected for Sales Order in Numbering System Setup.

2. Enter data in these fields:

The program prompts you to select a one-step transaction type.

3. Select Credit memo and click Select.

4. Enter data in these fields if you want to attach this credit to an invoice. If you attach now, the program displays the lines and reverses the quantities and amounts. Attaching can save you data entry time. However, if the invoice has many lines and you need to change only one, attaching later may be easier. To attach later, see Attach a Credit to an Invoice After Entering Returned Items.

The program prompts Do you want to create a credit memo attached to invoice [number]?

5. Click Yes to confirm, click No to change the one-step transaction type, or click Cancel to end this action. When you click Yes, the program displays the lines on the invoiced sales order with negative quantities in the Qty open field.

6. Select the line the customer returned and click Select.

7. Click Modify and enter data in these fields:

8. Press F10 when you complete data entry.

9. Click OK or Obligate. The program displays the quantity obligated.

10. Click Sel twice to reset the quantity obligated to the quantity returned. For example, if the customer returned 2, the obligated quantity should be 2-.

OR

Select a location (not Sel) to highlight it, click Modify, and enter the quantity the customer returned.

OR

Click Location and enter data in these fields if the item is controlled:

11. Click Exit.

12. (Conditional) Select a line that the customer did not return and click Delete twice. Repeat until you have removed all lines that do not need to be credited.

13. Click Exit to return to the order header.

14. (Optional) Click Other info, click Modify, and select a reason code for the Memo reason field.

15. Click OK.

16. (Optional) Click Shipping info to correct freight, if you shipped one box, or a miscellaneous charge (for example, a handling fee). Accept the displayed negative amount for freight or enter the correct freight amount. A positive amount increases and a negative amount decreases the amount the customer owes.

OR

Click Frt detail to correct freight if you shipped several boxes. Select the box and click Select. Click Modify and enter the amount of the credit. Press F10 and click OK. Click Exit.

17. Click Confirm.
    Note: Confirmation of a credit memo adds stock back to an item's on hand balance. If you subsequently create a debit memo for the same item and control number and confirm it, you may be unable to reverse the credit memo without first reversing the debit memo. This is due to the fact that negative inventory may not be allowed. A message that inventory is not available to complete the reversal will be displayed and the transaction is exited.

18. Choose the appropriate options:

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