How to enter Credit Memo in Peachtree Software

Credit Memo

We use Credit Memo because sometimes we want to return the products, or we need to make an adjustment to a customer invoice. In these situations, we need to create a credit memo to reduce the amount of money our customer owes. If we owe money to a customer for overpayment or because we applied a credit memo to an invoice, we can write a check to the customer for the refund amount we owe. We can create a credit memo that refers to an unpaid original invoice, or we can create an open credit. Additionally, we can create credit memos for inventoried items or other goods or services. The following steps show how to use the Peachtree Credit Memo:

We first open an existing company which we have made and the following screen will be appeared in the Peach tree software after opening an existing company.

We use Credit Memo in Peach tree software by clicking on the Tasks Menu, the following screen will be appeared after clicking on the Tasks menu, the task menu is on the top screen of the Peachtree software as shown below

We after clicking on the Task menu choose the Credit Memo which is the 6th number option in the Tasks Menu and by clicking the Credit Memo the following screen will appear in our screen.

After the Credit Memo screen open we then enter or select the customer ID. After we select a customer, Peachtree fills in the customer name and address. In the lower-left corner of the window, we can see the customer’s current balance as of the system date. We can click the arrow button next to the balance to display a Customer Ledger report of the invoices and receipts that make up the balance. The customer ID is being selected from the drop down list as shown in the following screen

After entering the Customer ID we then select a date as shown below

  

After entering the Date we then select the Credit No, For the Credit No., we use the original invoice number preceded or followed by CM to indicate credit memo. This numbering scheme helps us to tie the credit memo to a particular sale. We then enter the Return Authorization Tab and the Customer Purchase Order tab. There is a tab of Sales Representative tab and then the discount tab is also there and we can amend the discount tab according to our requirement the following screen shows the four tabs and these tabs are not compulsory to fill out.

There are two tabs after the Return Authorization tab one is Apply to Invoice No. and the other is Apply to Sales tab. As we choose the ID the tap changed from Apply to Sales to Apply to Invoice No. tab. If the credit memo is for an unpaid customer invoice, click the arrow to open the drop-down list on the Apply to Invoice No. tab. Then select the invoice number to which we want to apply the credit memo. We select the Invoice No. of a Customer by clicking on the drop down list arrow and the following screen will be appeared in our peach tree software

Peachtree fills in the lines that appear on the original invoice. If we’re creating a credit memo for which there’s no existing invoice, click the Apply to Sales tab and enter the information for the items to be credited, including quantity, item, price, and (if applicable) job. In the Returned field on each line of the Apply to Invoice No. tab, type the quantity the customer returned. Enter the returned quantity as a positive number. Peachtree understands that this is a return. To quickly fill in the original transaction quantities, click the Return button and then select All. If the customer is returning inventory items, Peachtree automatically restores the item quantities to inventory. If the inventory items are damaged, the customer is probably not returning them. Go ahead and record the credit memo, but don’t enter any item IDs. This gives the customer a credit for the damaged goods, but does not bring them back into your inventory. If a line item was originally assigned to a job, Peachtree also assigns the credit to the same job. If the customer is returning serialized inventory items, click the Serial Number button, as shown here in the margin, and then select the serial numbers being returned. If you charge the customer a restocking fee, click the Apply to Sales tab and enter it as a negative dollar amount. In the Apply to Invoice No. tab the returned item is taken as 5 and the following screen will be appeared in the screen in which the Total amount has been already calculated by the software.

Click the Save button to save the transaction, or click the Print button to print and save the credit memo.