Credit memos

A Credit Memo (short for "credit memorandum") is a commercial document issued by a Seller to a Buyer, indicating the products, quantities and agreed prices for products or services that the Seller provided the Buyer with, but Buyer returned or did not receive. It may also be issued in the case of errors or allowances. A Credit Memo can reduce or eliminate the amount that the Buyer has to pay the seller in respect of the original Invoice issued earlier.

In Peachtree accounting software the credit memo window is used to enter credit memos for customer returns and credits; we can apply credit memos to any existing customer invoices and also we can apply if there is no existing invoice.

To display the credit memo window from task menu select the credit memos…

Then the credit memo window will be appearing on your screen.

inventory.

When process is finished select the save button

Enter or select the customer I.D, and enter the transaction date and credit #. If there are available invoices against which you received the goods returned then the Apply to invoice tab will be appearing in this 1^st of select the invoice and then entered the quantity returned in the returned column the total amount will be automatically calculated. Peachtree will automatically restore this quantity to inventory.

If the credit memo is to be applied to a sale for which there is no existing invoice, on the Apply to Sales tab, enter line-item information for the item or items to be returned or credited, including quantity. Peachtree will automatically restore this quantity to

Vendor credit memos

Similarly when we returned the purchases to our vendor this window will be used.

To open the Vendor Credit Memos window, select Vendor Credit Memos from the Tasks menu.

The following window will be appearing:

In this window select the vendor I.D, enter the date and credit #.

If the credit is issued on a purchase without an invoice, you enter it on the Apply to Purchases tab of the Vendor Credit Memos window.

If the credit is issued on an existing invoice, you enter the credit on the Apply to Invoice tab of the Vendor Credit Memos window.

Entering the information in this window is same as we did in credit memos window. At the end clicks on save button.