AR credit memo for returned merchandise

Question

I have a customer who has already paid an invoice in full but now is returning some of the merchandise and would like a credit for the return. we will also be charging a 20% restocking fee for this inventory items they are returning. Any suggestions on how to do this? 
 
 Thanks Steve

Rhonda V · Answer

I would enter a negative invoice for the merchandise, less a positive charge for the restocking fee. 
 Down the road, when the customer does buy more merchandise, you'll invoice it at the full amount for the new merchandise. And when the customer pays the difference between the new merchandise and the credit, you'll apply the payment to the negative invoice first, then to the positive invoice second.

Sage Construction & Real Estate

AR credit memo for returned merchandise

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING