A credit memo is a transaction that decreases the amount a customer owes you. A credit memo created from a return authorization has no impact on inventory; however, a stand-alone credit memo does impact inventory.
To issue a credit memo:
- Go to Transactions > Customers > Issue Credit Memos.
- Under Primary Information:
- In the Custom Form field, select the credit memo form you want to use.
- Select the customer you are crediting.
- Accept today’s date, or enter another.
- If you use accounting periods, select the posting period for this credit.
- Enter the customer’s original purchase order number.
- If you like, enter a memo that will appear on the 2-line Accounts Receivable register.
- Under Sales Information:
- You can change the sales effective date for this transaction. The sales effective date determines which commission plan and historical sales team this transaction applies to.
- Check Exclude Commissions to exclude this transaction and its subordinate transactions from inclusion in all commission calculations. For example, selecting this box on a sales order excludes the sales order and the resulting invoice from all commission calculations for all sales people.
- Under Classification, select a department, class, and location you want this order associated with. (Note:If you use NetSuite OneWorld and the selected customer is shared with multiple subsidiaries, you can choose any subsidiary assigned to the selected customer. )
- On the Items subtab, enter information about each item credited, and click Add after each.If the item being returned is a serialized item, you can:
- enter the customer name, then enter the item number in the item field. Next, click List to select the serial number sold to this customer.
- enter the serial number and the item number will autofill the Item field.
- On the Billing subtab, the default billing address for the selected customer is displayed in the Bill To field. You can change this address as needed.
- On the Shipping subtab, enter the shipping details for this transaction.
- The Accounting subtab only shows if you are using the Multiple Currencies or Revenue Recognition features, if you have not enabled the Per-Line Taxes preference at Setup > Accounting > Taxes > Set Up Taxes, or if you have added fields to this subtab.
- On the Relationships subtab, enter a contact or partner details for this transaction.
- On the Sales Team subtab, if you use the Team Selling feature, select the Sales Team for this transaction.
- On the Communication subtab, enter communication information for this transaction.
- Click Save.
If you issue a credit memo after a customer has paid an invoice, this memo can be applied to any of the customer’s open or future invoices. To do this, go to Transactions > Customers > Accept Customer Payments, and select the appropriate customer