I have been struggling with the Credit Memo and Vendor Credit Memo
process for a while and I think this needs a real hard look.  Can
someone tell me the proper way to apply a Credit Memo generated from a
return to the Original Invoice from the sales order.

Here is the Example

Customer buys GZ1000 for a $1000 and is invoiced for $1000
He returns GZ1000 and is given a credit for $1000

How is that credit applied to the original invoice so it shows in
accounting that the customer no longer owes $1000?


Same thing on the Vendor side when returning a product back to vendor.

Thanks,

Jame

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