Add Restocking Fee on Credit Memo

When a customer returns items to the vendor, the vendor charges an amount called "Restocking Fee" to cover for expenses incurred in putting this item back on stock. The customer shoulders these expenses as a restocking fee on their credit memos.

To add a restocking fee on the credit memo:

1. Navigate to Lists > Accounting > Items > New.
2. Choose Item Type Discount.
3. Name the Discount as Restocking Fee.
4. Enter the rate or amount of the restocking fee and put an income account (example: Sales Discount account).
5. Click Save.
6. Enter a credit memo by navigating to Transactions > Customers > Issue Credit Memos.
7. Enter all necessary fields.
8. On Items tab, select the discount (Restocking Fee in this example) on the Discount field dropdown.

Note: If users want to apply different amounts of restocking fee based on the items, create different restocking fee items by repeating steps 1-3 above and enter the discount as a line item in the credit memo. This will calculate based on the line item directly above it.