Creating customer credits

A customer credit is money that you owe to a customer.

To process a customer credit, you first need to record a credit memo and then record the settlement of the credit (for example, by printing a refund check for your customer).

Recording credits

You can create a customer credit memo in the following ways:

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Reverse an existing sale. Use this method if the customer has paid for the entire sale.

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Manually create a credit. Use this method if you are crediting the customer for part of a sale.

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Process from web store. Use this method if you have processed a credit or refund through your web store and you now need to reflect it in your company file.

To reverse a sale

To reverse an invoice, the transaction must be unchangeable, that is, the Transactions CAN’T be Changed; They Must Be Reversed option must be selected in the Security tab of the Preferences window.

Find and open the invoice. For more information finding invoices, see ‘Finding a transaction’.

Go to the Edit menu and choose Reverse Sale. A reversal of the invoice appears in the Sales window. Note that the invoice amount is a negative amount.

If you want, you can make a some changes to the reversal (such as changing the date and memo), but you can’t change the accounts, amounts and quantities that are associated with the credit.

Click Record Reversal. A customer credit memo appears in the Sales Register - Returns & Credits window.

note : Viewing a credit memo

If you review the credit memo, you will see that the negative amount is now a positive amount. This is correct as it is a credit. Only a fee added should be a negative amount.

To manually create a credit for a non-item sale

Use this method if you want to credit the customer for part of a non-item sale.

tip : Create an account for tracking sales returns

Before you manually create a credit of this type for the first time, you may want to create an account for tracking returns and allowances, if one does not already exist in your Accounts List. For more information about creating accounts, see Set up accounts.

Go to the Sales command centre and click Enter Sales. The Sales window appears.

Type or select the customer you are creating a credit for.

Select the Credit Memo status from the list in the top left corner of the window.

Click Layout and choose Miscellaneous, then click OK.

In the Description column, enter a description of the credit for your records.

In the Account column, select the account to be credited. This is the income account you use to track sales returns and allowances.

In the Amount field, type the amount of the credit as a positive amount. A negative amount can be recorded for fees such as restocking fees or bank charges.

Click Record. A customer credit memo appears in the Sales Register - Returns & Credits window.

To manually create a credit for an item sale

Use this method if you want to credit the customer for part of an item sale.

Go to the Sales command centre and click Enter Sales. The Sales window appears.

Type or select the customer you are creating the credit for.

Select Credit Memo from the list in the top left corner of the window.

Click Layout and choose Item, then click OK.

In the Ship column, type the number of items being returned as a positive number. A negative amount can be recorded for fees such as restocking fees or bank charges.

Click Record. A customer credit memo appears in the Sales Register - Returns & Credits window.

note : Viewing a credit memo

If you review the credit memo, you will see that the negative amount is now a positive amount. This is correct as it is a credit. Only a fee added should be a negative amount.

To process a credit from your web store

Use this method if you have already issued a credit or a refund in your web store and need to reflect that credit in your company file.

Go to the Sales command centre and click Process Web Orders. If you have recorded sales or credits in your web store since you last synced with your company file, the Shopify Logs window will appear displaying how many orders, customers, payments, refunds or cancellations have been either successfully processed, processed with warnings or failed to process.

Click OK to close this window.

Go to the Sales command centre and click Sales Register. The Sales Register window appears.

Click the Retuns & Credits tab. Select Shopify Refunds view. The refunds imported from your web store will be listed in the appropriate date range.

Click Close to exit the register or for more information on how to settle the credit, see Settling credit notes.