What is a Credit Memo and how do I create one?
A Credit Memo is a reference to an ROA Payment made toward a customer’s credit account that has not yet been fully applied to unpaid Invoices or Finance Charges. In other words, a Credit Memo is a reminder or “memo” referring you to an outstanding credit (an ROA Payment) which remains to be dealt with. Because many accounting systems use the term “credit memo” specifically for miscellaneous adjustments, the term can be misleading. In Keystroke, although a Credit Memo may sometimes represent a miscellaneous adjustment toward an account, it is really just a reference to an outstanding ROA Payment, which could’ve been tendered using any Payment Type (“Check” or “AR Adjustments”). A Credit Memo should not be used for merchandise returns. To allow for proper handling of inventory, a return or refund should be entered as a new Invoice with a negative line item quantity. Whenever possible, miscellaneous adjustments should also be entered as Invoices. About the only reason to enter a miscellan
