Voiding a credit memo

There may be times when you need to void a credit memo due to various reasons, such as incorrect information, changes in the transaction, or cases where the customer has not returned the item for which the credit memo was initially issued.

Voiding a credit memo essentially involves reducing the credit memo's value to zero. This is achieved by removing item lines from the credit memo and eliminating any associated refunds. If the credit memo has been applied to an invoice, it's essential to un-apply the credit before voiding it.

Deleting the refund

If the credit memo has been refunded and you wish to void it, start by deleting the refund created on the memo.

To delete the refund, go to Credit Memo > Options > Show Refund(s) from Credit

This action will take you to the Customer Refund Centre, where the refund associated with the credit memo is displayed. Right-click on the refund and select the "Delete" option.

The refund will be deleted, and the status of the credit memo will be updated to "Open." You can then proceed with removing the item lines from the credit memo.

Un-applying the credit

If the credit memo you wish to void has already been applied to an invoice, begin by un-applying the credit. This action will change the status of both the invoice and the credit memo back to "Open."

To un-apply the credit memo, go to Credit Memo > Options > Show Applied on Invoice(s)

You will be redirected to the Customer Credit Centre with the details of the credit applied to the invoice. Right-click on the credit and select the "UnApply Credits" option to unapply the credit.

Removing the item line(s)

To void a credit memo, all item lines must first be removed. For inventory items, this also returns the credited inventory by uncrediting the item quantity. Once all item lines are removed and the credit memo amount becomes zero, the credit memo can be voided.

• For non-inventory items: Right-click the item line and select Delete to remove it from the credit memo.

• For inventory items: Click the Qty value on the item line to open the Add/Change Credit Memo Qty window.

  • In the Add/Change Credit Memo Qty window, select one of the available Location rows. When a location row is selected, the Location, On Hand, and Available to Pick fields are automatically populated. Alternatively, you can select the required location directly from the Location drop-down list, which displays the same available locations.

  • Select UnCredit, enter the quantity to uncredit, and click the ✓ (Apply) button.

  • Click Close to return to the credit memo. The uncredited quantity is reflected in the Qty column.

  

  • Once all item lines have been successfully removed, navigate to the "Options" menu and select "Void" to complete the process of voiding the credit memo.

If no location is available to select, it means the item does not currently have inventory assigned to a location for the selected store. Create a location for the selected store and item, and add the required quantity to make the inventory available. Then, reopen the credit memo and click the item quantity again. The location will now be available for selection in the Add/Change Credit Memo Qty window.

Voiding the Credit Memo when the Item is in the Damaged Location

When you have created a credit memo for damaged items, the item is received in the "Damaged" location within your inventory system.

Voiding such a credit memo involves a slightly more intricate process since the stock isn't readily available for uncrediting.

To void the Credit Memo when the Item is in the Damaged Location, the item will have to be made “Available”. Once the item has been transferred to an available location, we can then uncredit the quantity from the credit memo and then proceed to void the credit memo.

To make the item available, open the item in the "Inventory by Location" module. You will find that the item is in the Damaged location and "Not Available".

Right-click on the item and select the “Change Not Available Qty” option.

Enter the “New to Not Available Qty“, by adding the qty on the Credit Memo to the Available Qty. Hit “Change Quantity”.

After making the item available, open the Credit Memo and uncredit the Item. Then, proceed to void the credit memo.

Voiding a "Warehouse" type Credit Memo

The process for voiding a Warehouse type Credit Memo depends on the App Configuration “Use RMA ASN Process.”

Scenario 1: When App Config “Use RMA ASN Process” is Disabled

Step 1: The system allows ASNs to be generated directly from Credit Memo page.

Step 2: When voiding a "Warehouse" type credit memo, you will first have to check if the ASN has been generated or not.

Step 3: If the ASN is not yet generated, you can go to Options > Void to delete the credit memo.

Step 4: If the ASN is generated, you must void the ASN first before you can proceed to void the Credit Memo.

Step 5: The ASN can be voided only if its status is Open/Received. To void an ASN in Open status, click on the ASN number displayed at the top-right corner of the screen.

Step 6: You will be navigated to the ASN screen. Click on the Bin icon located on the top-right to delete the ASN.

Step 7: After deleting the ASN, go to Options > Void to delete the credit memo.

If the App Configuration “Use RMA ASN Process” is disabled and the generated ASN is in Closed status, refer to the steps below to void the Credit Memo linked with the Closed ASN.

Scenario 2: When App Config “Use RMA ASN Process” is Enabled

Step 1: Return ASNs can only be generated from approved RMAs. Hence, ASNs cannot be generated directly from Credit Memo page.

Step 2: In this case, since no ASN is generated from the Credit Memo, you can void the Credit Memo directly.

How to Void Credit Memo Linked with "Closed" ASN?

Step 1: Enable the App Configurations “Use RMA ASN Process” and “Allow Credit Memo Void with Linked ASN.”

Step 2: Navigate to Menu → Sales → Credit & Deposit → Credit Memo Centre and open the Credit Memo linked to an ASN.

Step 3: Reverse the returned inventory manually.

Step 4: Select Void option from the Options menu to complete the void action.

Step 5: Verify the ASN status in the ASN Centre. The linked ASN status changes to Void.

The App Configuration “Allow Credit Memo Void with Linked ASN” functions only when the “Use RMA ASN Process” configuration is enabled.