Issue a Credit Memo Without Impact to Inventory

Issue a Credit Memo Without Impact to Inventory 

 
1. Use a zero quantity on the transaction. 
 

• When creating the credit memo/refund, change the item’s quantity to zero and retain the amount. 
  If a popup says The line total amount is not equal to the item price times the quantity. Is this correct? displays, click OK. 
• Click Save. 

• 

OR 

2. Create a journal entry, using the GL account or related Gl account shown below.  
 

 
Once you opt to select either 1 or 2, (i.e., ) you will then apply this to an open invoice of the customer: 
 
1. Go to the open invoice  
2. Click Accept Payment button  
3. Apply tab>Credits 
4. Select from the list the journal/credit memo you have created.  
 

 
Check the credit to apply and place an amount on the credit column (if you are just applying a porting on the credit to the invoice) 

Then save.  
 
Note: The ability to create a credit memo and associate it with an amount instead of an item is currently being tracked by Enhancement 81003. 

This is an alternate solution for the enhancement. 

A. Create an Other Charge Item:  

1. Navigate to Lists > Accounting > Items > New > Select Other Charge For Sale 

2. On the Item Name/Number field input the name for the item 

3. Go to the Accounting tab > on the Income Account field select the Account to which you will charge the credit 

4. Click Save 

B. Create a Credit Memo and Applying it to the Invoice  

5. Go to the Invoice record > click Credit button 

6. On the Credit Memo page > Items tab > Items subtab > click Clear All Lines 

7. Then input the Other Charge Item created on Step 1 

8. Enter the Rate or Amount 

9. Click Add 

10. Then go to Items tab > Apply subtab > check the apply checkbox for the Invoice 

11. Then on the Payment column > input the Amount 

12. Click Save 

Result: The GL impact will be decreased on the Sales and Account Receivable account.