The purpose of creating a Credit Memo Invoice is to create a Credit for a client or vendor that you keep on file until its to be used to pay for future invoices. However, you can use a manually created credit memo invoice for a variety of reasons, such as trying to reduce the AR of an open invoice.
Here are some similar features you may want to explore before following these guides steps are:
Credit Memos are created similarly to a regular invoice, but with a negative amount in the line.
You can also create Credit Memos on the AP side as well using Vendor Invoices. This is if you have a Credit on file with a vendor that you want to track on your side.
NOTE: NEVER create a credit memo with the Advance Billing box checked. To create a credit memo for an advance billing invoice, please refer the Advance Bill Invoices guide.
Adding A Credit Memo
Menu > Billing > Today Billing > '+' New Client Invoice
- Enter the appropriate information in the header information. The Posting Date is very important. This is the date the system will recognize the reduction in AR against that invoice.
- In the Details area, enter a negative total amount. Ex. -100
- In the description area, enter details regarding the reason for the credit.
- SAVE > Submit for Approval/Approve.
Connect Credit To Outstanding Invoice(S)
From the Credit Memo, click on Credit tab
Click on the '+' to select the invoice(s) you want to apply the credit towards
- Once selected, click Done.
- You will see the associated invoice as a line item in the credit memo.
- Post the invoice.
View The Posting Detail
- From the Posting details, Settings tab: Status, you see that the transaction will -Debit AR and -Credit Revenue. The reduction of revenue will be seen in the project.