Refund a Credit Memo - Automated

The following will guide you from Creating Credit Memo without Inventory Impact, Processing that Credit Memo to Cash Refund and Cutting a Check for that refund.

1. Create a Credit Memo without Inventory Impact.
   1. Sales > Activities > Invoices 
   2. Click New to open new Invoice screen.
   3. In the header,
      1. Set Type field to Credit Memo.
      2. Select customer in the Customer field
   4. In the grid area, 
      1. Select an item to return in the Item No. field
      2. Type in qty to be returned in the Shipped field, ex. 20.00
   5. Since this is a credit memo without Inventory Impact, uncheck Inventory Impact checkbox. This means that posting this transaction will not impact Inventory and COGS account.
   6. Click Post.
      
      
      1. GL entries for Credit Memo are as follows. 
         

2. Process Refund for Credit Memo.

   Note:

   Before you can process a refund, make sure that the Customer is also a Vendor. To do that, open Customer record, click on Entity Type tab and add Vendor in the Type grid.

   

    

   1. Sales > Activities > Invoices
   2. Open Credit Memo transaction

   3. Click Process Refund. This will automatically create a posted Invoice > Cash Refund type transaction and a ready to post Pay Voucher transaction
      

       

   4. Pay Voucher Details screen is automatically opened. Click Post.
      
      
      1. GL entries for Pay Voucher are as follows:
         
   5. Click Process Payment to cut a check.
      
   6. Click Print Check.
      
   7. Report Viewer - Check Voucher will then be opened. Click Print to print the Check.
      
   8. Close the Report Viewer, then close the Process Payments screen.