Creating a Credit Memo

Background
Creating a Credit Memo in AccountEdge 2014 and Earlier
Creating a Credit Memo in AccountEdge 2014 (18.0.6) and Later
Applying a Credit Memo to a Sale
Paying Back a Credit Memo Refund

Background

There was an update released for AccountEdge 2014 (Build 18.0.6) that introduced a new credit memo feature. Previous to this update all credit memos were just created as negative sales. After this update you have the option of either creating a negative sale OR using the Credit Memo sales type.

Creating a Credit Memo in Versions Previous to AccountEdge 2014

Item Credit Memos
Non-Item Credit Memos

Item Credit Memos

To create a credit memo for an item sale (ie: an item return):

  1. Click Enter Sales in the Sales Command Center
  2. Enter the customer's name
  3. Select Invoice from the list at the top left corner of the window
  4. Click the Layout button; select Item from the list
  5. Indicate the number of items returned as a negative number (cost of the items appears as a negative amount)
  6. Click Record

Non-Item Credit Memos

Before you create a non-item credit memo you need to know which account you want to apply this credit memo against. Normally this would be an expense account. You can create this account by:

  1. Going to the menu bar at the top of the screen and clicking "Lists"
  2. Select Accounts from the drop down menu
  3. Clicking the "New" button in the bottom left corner
  4. Choosing "Detail" in the upper left corner of the create account window
  5. Picking a free Expense account number (6-XXXX) and hitting tab
  6. Enter an appropriate name (Bad Debt, Return, etc)
  7. Clicking OK in the bottom right corner

To create memo for a non-item sale:

  1. In the Sales command center, click Enter Sales
  2. Enter the customer's name
  3. Select Invoice from the list in the top left corner of the window
  4. Click Layout and choose Service
  5. In the Description column, enter a description of the credit
  6. Select the account you created above
  7. Enter the credit amount as a negative value
  8. Click Record
  9. The credit is listed in the Returns & Credits area of the Sales Register

Creating a Credit Memo in AccountEdge 2014 (Update 18.0.6) and Later

Item Credit Memos
Non-Item Credit Memos

Item Credit Memos

To create a credit memo for an item sale (ie: an item return):

  1. In the Sales command center open the Sales Register
  2. Click the Returns & Credits tab at the top
  3. In the lower right corner click on New Credit Memo
  4. In the upper left area choose the customer
  5. At the bottom of the window click the Layout button; select Item from the list
  6. Indicate the number of items returned as a positive number
  7. Click Record

Non-Item Credit Memos

Before you create a non-item credit memo you need to know which account you want to apply this credit memo against. Normally this would be an expense account. You can create this account by:

  1. Go to the menu bar at the top of the screen and clicking "Lists"
  2. Select Accounts from the drop down menu
  3. Click the "New" button in the bottom left corner
  4. Choose "Detail" in the upper left corner of the create account window
  5. Pick a free Expense account number (6-XXXX) and hit tab
  6. Enter an appropriate name (Bad Debt, Return, etc)
  7. Click OK in the bottom right corner

To create memo for a non-item sale:

  1. In the Sales command center open the Sales Register
  2. Click the Returns & Credits tab at the top
  3. In the lower right corner click on New Credit Memo
  4. In the upper left area choose the customer
  5. At the bottom of the window click Layout and choose Service
  6. In the Description column, enter a description of the credit
  7. Select the account you created above
  8. Enter the credit amount as a positive value
  9. Click Record
  10. The credit is listed in the Returns & Credits area of the Sales Register

Apply a Credit Memo to a Sale

To apply a credit to a sale:

  1. In the Sales Register, click the Returns & Credit tab
  2. Select the credit memo and click Apply to Invoice
  3. Apply the credit to any open invoices. You can apply the entire credit or only a part of the credit.

NOTE: If you use Categories the credit memo and the sale you are applying it to both have to fall under the same category.

Issue a Refund from a Credit Memo

To issue a refund from the credit memo:

  1. In the Sales Register, click the Returns & Credit tab
  2. Select the credit memo and click Pay Refund
  3. Choose the correct bank account you want to pay out of in the upper left
  4. Enter the proper date for the check and the check number
  5. Record the check

NOTE: If you have multiple credit memos for one customer you can combine them so that you only have to cut one check. This article has instructions on how to cut one check from multiple credits.