A credit memo can be used when you need to issue a refund to a client or vendor, or when you need to reduce/discount an invoice amount that has already been billed.
This help article will give you a better understanding of how to create a credit memo. Check out the outlined steps below to get started.
Create new credit
Go to the accounts payable page, click the new button then select new credit.
A pop-up window should appear where you can enter the credit memo information.
Enter credit memo
Enter the required information. The following fields are required in the first section: Client/Vendor; Language; Credit Date; Due Date.
Then, you must enter information about the credit you are issuing. All fields, except description, have a drop-down menu to help you make a correct association. The following fields are required in the credit section: Type, Job, Account, and Cost.
Click save/approve once you are done.
Accounting entry for credit memo
You could check the accounting entry for the credit memo by going to the general ledger report and search for the credit memo number.