Order Entry Credit Memo Refund

The following instructions explain how to enter a Credit Memo for a refund to the customer (i.e. cash, credit card) for goods returned.

Order Processing:

• Order Processing (Module 6)
  • ​Order Entry & Editing (Task 1)
    • ​Enter New/Change Existing Order (Sub-task 1)
      • ​Open up a new order in order entry for the customer getting the refund.  When the cursor is at the “Any change?” prompt, type in a 6 for Field #6: Sale type.  Enter in a 3 for Credit Memo.
      • On the Item Screen:    Type in items, Quantities, prices etc… for the refund
      • On the Action/Collection Screen:
        • Select Action 22 - CR Memo
        • The cursor will go to the “Pay Method” column. 
          • ​If the refund is a Cash refund, Press the Tab key in field #11: Cash.

          • ​If the refund is a Credit Card refund, Press the Tab key in field #14: Crd card

• ​Order Processing (Module 6)

  • ​Invoiced Order Holding File (Task 2)

    • ​Once the Credit Memo is transferred to the Invoiced Order Holding file (Task 2), the Credit Memo and refund payment will appear on the invoiced order edit list and posting register.  The normal balancing of cash/check and credit cards should still be followed. 

Accounts Receivable:

When the Credit Memo Refund is posted from Order Processing, Task #2 -Invoiced Order Holding File over to Accounts Receivable:

• Account Receivable (Module 2)
  • ​Sales Entry & Editing (Task 1)
    • ​There will be a computer generated zero debit memo.
    • The credit memo is applied to the computer generated zero debit memo.

  • Cash/Receipts Entry & Editing (Task 2)

    • ​There will be a cash or credit card refund applied to the computer generated debit memo.  (The normal balancing of cash, checks & credit cards should still be followed.)

These two A/R Tasks will need to be posted.  Since everything is automatically applied, at month-end when the “Clear Paid Invoices from A/R Open” program is processed, these will all clear off of the customer’s account.