Adjusting journal entries

You can select Enter and edit transactions to see the Credit memos and Debit memos options.

Note: Use the Enter and edit credit memos and Enter and edit debit memos windows only when you need to change to an existing open item, to credit (reduce) or debit (increase) it.

Credit memos make adjustments that reduce or reverse normal (or debit balance) open AR items. These transactions create accounting entries but no printable documents, other than transaction entries on batch and other audit-trail reports.

Use credit memos (infrequently) to perform the following operations:

• Write off an uncollectible open item (a “bad debt”)
• Reduce or reverse a line item charge, correcting an overcharge
• Reverse an existing sales (or simple order) transaction entirely
• Record a product return to credit the customer

Note: You should not use a credit memo to apply a credit for an event function. To apply a credit against an event function, edit the event registration and remove the function fee only. This will ensure that the correct account transactions are performed.

Debit adjustments are the opposite of credit memos. They make adjustments that increase the debit balance of open AR items.

Use debit adjustments (rarely) to perform the following operations:

• Increase or add a line item charge to correct an undercharge
• Zero out a credit balance for a refund due to an overpayment, credit memo, or cancellation transaction

The preferred method to make debit adjustments is to issue refunds in the Credit Invoices window (from AR/Cash, select Process month-end procedures, and click Credit Invoices).

More:
Enter and edit credit memos window
Enter and edit debit memos window
Recording credit memos