Create Credit Memo to reverse shipping / handling cost from Invoice or Cash Sale

Scenario:

•        Credit backpartial or full amount of Shipping Costor Handling Cost found in the Shipping tab of the customer salestransaction (Invoice or Cash Sale) only without crediting anyother items in the sales transaction

•        User is notpermitted to save a Credit Memo with only the Shipping tab filledup

•        User isrequired to enter an item in the Items tab of the Credit Memo

•        User is notpermitted to use the items found in Lists > Accounting > ShippingItems as line items in the Credit Memo

 

Solution:

Option 1:

•        Check the GLImpact of the sales transaction

•        Take note ofthe credited account for the Shipping / Handling

•        Create a shippingitem

•        Navigate to Lists> Accounting > Items > New

•        Choose betweenOther Charge for Sale and Other Charge for Resale

•        Enter theshipping / handling account in the Income Account field of the Accountingtab in the item record

•        Create a CreditMemo

•        Navigate to Transactions > Customers > IssueCredit Memos

•        Enter the OtherCharge item in the Itemstab

•        Make sure thatthere is no Shipping / Handling Cost entered in the Shippingtab of the Credit Memo

•        Save the Credit Memo

•        The GL Impactof the Credit Memo should now show a Debit to the shipping/handling account and Credit tothe Accounts Receivable account

Option 2:

•        Set Quantity= 0 on the Credit Memo's Items tab > Items sub tab

•        Enter the Shipping / Handling Cost under the Shipping tab

•        Save the Credit Memo