Sales Credit Memos

Customers Accounting
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A beginner video is for people with little or no experience with Business Central. It is explained thoroughly and is easy to understand. Beginner Watch the "basic" videos to take the tour of the main processes of Business Central. This is the basic, need-to-use functionality. The Basics
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Presenter: Sune Lohse, Chief Strategy Officer

How to make sales credit memo in Business Central?

If I get complaints from my customer or I get items back from my customer, I might need to make a sales credit memo in Business Central.

This is what happens in the video

Let’s see how that works.

So getting a sales credit memo, maybe I’m getting an item back and I want to create a new sales credit memo directly from my menu to customer number 30,000 that I have sold some goods, and the normal way to prepare my sales credit memo is to copy the posted sales invoice.

It’s also possible to copy other documents, but if I want the pricing to be completely correct, I should select the invoice if possible.

So I’ll select my posted invoice and I can select my document number and it will, of course, filter on my customer name that I have added.

I don’t know, it’s the last posted sales invoice, so I will sort in descending order and this is the one up here.

From my copying window, I could also recalculate lines, but normally the default will be not to do that because I would like the prices to go all the way back the way it actually was created.

And after copying my invoice into the document, I can even change the line. So maybe in this example, I would like to take this one bike back, but maybe I agree with the customer that the service you made is not something that we need to credit so I could just delete that line, because the service might have been done on something else. So I’ll just delete this one.

And likewise on the software updates that might refer to something else, I’d like to delete that one as well. And the reason I’m copying the document and not just entering the line is to get the connection to the posted sales invoice in which this item was actually created.

So it could have been possible also just to enter a sales credit memo manually with the customer number and the lines, but in this case it wouldn’t be linked to my originally posted sales invoice.

Now, I’m done. I can preview my postings, my statistics, Et cetera.

And when I’m done with all that, I could just post the credit memo.

And it suggests that I could open the posted credit memo to see how it looks if I want to do that. That’s a standard functionality.

And I can just check that everything is correct. And this is of course the posted sales credit memo meaning the financial perspective of all this.

So if I navigate into my entries I can see, on this document it’s all the financial entries and documents related to that meaning my posted sales credit memo, for G/L entries, VAT entries, et cetera.

But it also would have made an item Ledger entry on a on a posted document because I actually got the item back, so I could search for my posted return shipment – Sorry, my posted return receipt, of course because I got the item back.

So on my inventory, on my warehouse, somebody needs to have document to handle this and that was the posted return received. Here I can see my posted return received, and if I navigate to the entries on that one and the document, I can see there’s an item Ledger entry with the negative amount on that specific item.

And of course, the quantity will be positive because I add to my inventory well as the normal quantity with the type sale will be negative in my item ledger entries.