How to: Process Sales Returns or Cancellations

If your customer wants to return or get reimbursement for items or services that you have sold and received payment for, you must create and post a sales credit memo that specifies the requested change. To include the correct sales invoice information, you can create the sales credit memo from the posted sales invoice or use a copy function.

Note: If a posted sales invoice has not yet been paid, then you can use the Correct or Cancel functions on the posted sales invoice to automatically reverse the involved transactions. These functions only work for unpaid invoices, and they do not support partial returns or cancellations. For more information, see How to: Correct or Cancel Unpaid Sales Invoices.

In addition to the original posted sales invoice, you can apply the sales credit memo to other sales documents, for example another posted sales invoice, because the customer is also returning items delivered with that invoice.

A return or reimbursement may relate to only some of the items or services on the original sales invoice. In that case, you must edit information on the lines on the sales credit memo. When you post the sales credit memo, the sales documents that are affected by the change are reversed and a refund payment can be created for the customer.

You can send the posted sales credit memo to the customer to confirm the return or cancellation and communicate that the related value will be reimbursed, for example when the items are returned.

To create a sales credit memo from a posted sales invoice

  1. In the top right corner, choose the Search for Page or Report icon, enter Posted Sales Invoices, and the choose the related link.
  2. In the Posted Sales Invoices window, select the posted sales invoice that you want to reverse, and then choose the Create Corrective Credit Memo action.

    Most fields on the sales credit memo header are filled with the information from the posted sales invoice. You can edit all the fields, for example with new information that reflects the return agreement.

  3. Edit information on the lines according to the agreement, such as the number of items returned or the amount to be reimbursed.
  4. Choose the Apply Entries action.
  5. In the Apply Customer Entries window, select the line with the posted sales document that you want to apply the sales credit memo to, and then choose the Applies-to ID action.

    The number of the sales credit memo is inserted in the Applies-to ID field.

  6. In the Amount to Apply field, enter the amount that you want to apply if smaller than the original amount.

    At the bottom of the Apply Customer Entries window, you can see the total amount to apply to reverse all involved entries, namely when the value in the Balance field is zero.

  7. Choose the OK button. When you post the sales credit memo, it will be applied to the specified posted sales documents.

    When you have created or edited the needed sales credit memo lines and the single or multiple applications are specified, you can proceed to post the sales credit memo.

  8. Choose the Post and Send action.

The Post and Send Confirmation dialog box opens showing the preferred sending method for the customer. You can change the sending method by choosing the lookup button for the Send Document to field. For more information, see How to: Set Up Document Sending Profiles.

The posted sales documents that you applied the credit memo to are now reversed, and a refund payment can be created for the customer. The sales credit memo is removed and replaced with a new document in the list of posted sales credit memos.

To create a sales credit memo from scratch

  1. In the top right corner, choose the Search for Page or Report icon, enter Posted Sales Invoices, and then choose the related link.
  2. Choose the New action to open a new empty sales credit memo.
  3. In the Customer field, enter the name of an existing customer.
  4. Choose the Copy Document action.
  5. In the Copy Sales Document window, in the Document Type field, select Posted Invoice.
  6. Choose the Document No. field to open the Posted Sales Invoices window, and then select the posted sales invoice that contains lines that you want to reverse.
  7. Select the Recalculate Lines check box if you want the copied posted sales invoice lines to be updated with any changes in item price and unit cost since the invoice was posted.
  8. Choose the OK button. The copied invoice lines are inserted in the sales credit memo.
  9. Complete the sales credit memo as explained in the "To create a sales credit memo from a posted sales invoice" section in this topic.

See Also

Manage Sales
Set Up Sales
How to: Send Documents by Email
Work with Dynamics NAV



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