How to Apply a Credit Memo in JobBOSS

Issue and apply a credit memo

1. 1Find the original invoice and note its number, customer, amount, tax and the job or lines it covers.
2. 2Decide why the credit is being issued: price correction, short shipment, returned goods, scrap or goodwill. The reason drives which accounts are affected.
3. 3In Accounts Receivable, open the area for invoices or credits and create a credit memo for the customer, referencing the original invoice number.
4. 4Enter the lines or amount to credit, with the same tax treatment as the original invoice so sales tax reverses correctly.
5. 5If goods are coming back, record the return in inventory or shipping so stock and cost are restored, rather than crediting money only.
6. 6Post the credit memo, then apply it against the open invoice (or leave it as an unapplied credit if no invoice is open).
7. 7Check the customer's AR aging and the invoice balance, and confirm the ledger entry reached the right revenue and tax accounts.

Applied versus unapplied credits

Common pitfalls

• !Crediting money but not returning the goods in inventory, leaving stock and cost wrong.
• !Using different tax treatment from the original invoice.
• !Leaving credits unapplied, so aging shows overstated open invoices.
• !Posting into a closed period.
• !Issuing a credit larger than the invoice.
• !Using one reason for every credit, so margin analysis cannot separate returns from price changes.