How do i raise credit note for a transaction that has been completed - paid

Question

We sold a 3 items to customer last year valued at $9000. Now after one month customer paid for the items in full and customer account is zero. But this year customer returns to say he wants to return two of the items for a refund. How do I raise a credit memo for this transaction.

Answer 1

Hi.
One of the ways can be (you need to create the customer as supllier in AP):
1.In AR issue a Credit Memo
DR Sales
CR Receivables
2.In AR issue a Debit Memo
DR Receivables
CR Clearing Account
3.In AP enter an invoice
DR Clearing Account
CR Liability
Pay the invoice and give the check to your customer.
Octavio