Credit Memos and Restocking Fees

By | May 11, 2016

Credit Memos are used when items sold on a retail or delivery sale are returned. You have the option of charging a restocking fee on the returned items as well.

To enter a Credit Memo

Locate the original sale and open it. Select Credit Memo from the action menu.

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The Credit Memo form opens.

 

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Click on the items you want to return. Any shipping fees will be credited back by default. Uncheck the box if you don’t want to return them.

Enter a restocking fee if there is one. This is a lump sum amount that’s deducted from the credit memo.  It can be any amount (but not less than zero). If you enter an amount greater than the total credit memo the customer will owe more money.

Don’t forget to say why

You have to enter something in the comment field. Whatever you type here will also appear on the invoice or credit memo so keep it short but descriptive.

Be certain everything is correct! You can’t edit or change the Credit Memo once it’s made.

Click Make Credit Memo when you’re done. To cancel the memo just click the cancel button instead.

Where to put the credit

Depending on whether the invoice is already paid or not you have 2 or 3 choices about where to apply the credit memo.

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  • Apply to this order’s invoice: if the invoice isn’t paid yet you can choose this option. The credit memo will be added to the invoice.
  • Create separate credit memo: this option creates a Credit Memo – basically a negative invoice. You will want to choose this if the invoice is already paid and we need to refund the customer’s credit card, for instance.
  • Leave in Customer’s account: this creates the Credit Memo but it’s left ‘un-invoiced’. It’s just like any other billable item in their account that can be added to any other invoice on the Partner Billing form.

A Credit Memo is just like any other Billable Item. You can assign or reassign it to an invoice in the Partner Billing area.

Warehouse

Issuing a Credit Memo does not create any warehouse or inventory documentation.

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