Friday, February 29, 2008

Microsoft Office Accounting Part Six - Creating a Credit Memo

MicroPodCast – Podcasts for Microsoft Office Accounting Users. Useful bookkeeping, software, and business tips for MS Office Accounting users, consultants, and business owners.

Today's topic in our series of tips for MS Office accounting users is CREATING A CREDIT MEMO.

A customer credit memo is a reverse invoice used either when a customer returns items or when a customer is given a credit on their balance, possibly if they are dissatisfied with their purchase (or to make them pay the remaining balance).

You should note the following:

The postings of a credit memo are reverse of an invoice. That also means that inventory items will be taken back and added to inventory if they appear on the customer credit memo.

A credit memo can also be created directly from an invoice (by clicking Create credit memo on the Actions menu of the invoice).

If you want to credit the customer, but not take items back in inventory, you should use a non-inventory item or a financial account.

Credit memos are listed on the invoice list.

A credit memo can be settled with (paid to) the customer in three ways:

1. By creating it from an invoice, thus reversing the invoice

2. By issuing a refund (a payment to the customer)

3. By applying it to one or more existing invoices on the customer payment form.

If you are using Microsoft's Office Accounting, you may want to download & print our series for future reference or as a guide to using the new MS Office Accounting software.

I hope these Microsoft Office Accounting tips are helpful. If you are using QuickBooks, check out our new QuickBooks series or visit The QuickBooks Gal podcasts.

Next time: Creating Checks

If you have questions, drop me a line at info@custmbiz.com. I look forward to your comments and questions.
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