Close a Credit Memo Without Voiding or Deleting It

Some users need to close credit memos for the following reasons:

·               It will no longer be applied to an existing invoice

·               To clear the A/R Aging report of these transactions. A/R Aging is showing a negative amount for the period

·               To temporarily close the Credit memo so it can be re-opened in the future and applied to open invoices

Doing the steps below will leave an audit trail, rather than deleting the credit memo.

 

A. Create a Journal Entry to post a debit to Accounts Receivable.

1.      Navigate to Transactions > Financial> Make Journal Entries.

2.      Debit the Accounts Receivable account used in the Credit memo and indicate the Customer/Job record to allow future application against the Credit Memo. The credit account should be a holding account or an income account depending on how users want to treat the transaction.

3.      Click Save.

 

Then perform either of the following steps:

1. Navigate to Transactions > Customers > Issue Credit Memos > List.
2. Click Edit next to the Credit Memo.
3. Go to Items tab > Apply sub tab > Mark checkbox for Apply next to the Journal entry.
4. Click Save.  

As an alternative way, perform the following:

1.      Navigate to Transactions > Customers > Accept Customer Payments.

2.      Select both the journal and the credit memo to offset the related Accounts Receivable account. Make sure that the payment amount field is zero.

3.      Click Save.

B. If users want to re-open the Credit Memo in the future, perform the following:

1.      Navigate to Transactions > Customers > Issue Credit Memos > List.

2.      Click Edit next to the Credit Memo.

3.      Click Apply tab and uncheck the Apply box next to the Journal.

4.      Click Save. The Credit Memo's status is now set to Open.

5.      Delete or Void the Journal entry previously entered.