A credit memo can be entered to reduce an accounts receivable balance. This may be used in cases such as a pricing dispute, write-offs, or any other reasons the buyer will not pay the full amount of the invoice.


Step 1: From the Customers drop down menu, click BROWSE CREDIT MEMOS.


Step 2: Click ADD NEW.



Step 3: Select the customer then fill out the memo #, description and amount due.  Enter the expense account on the line itself. **Anything highlighted in YELLOW is required in order to save.**



Step 4: Click SAVE.



Step 5: You will see the newly added credit memo in the Browse Credit Memos window.


To post the credit memo, follow the steps here.