Why Would You Need to Create a Credit Memo?

Sometimes, you need to adjust an invoice after it’s been updated. Perhaps your customer returned some items and is requesting a credit for the return. Or maybe you mistakenly posted your invoice to the wrong date, sold an order to the wrong customer, included the wrong items in an order, or created a duplicate invoice. All of these situations require you to create a Credit Memo.

Mistakes happen, and returns happen. Fortunately, in Sage 100, there’s an easy way to make necessary adjustments: enter a credit memo using Sales Order Invoice Data Entry.

The Hidden Opportunity with Credit Memos

Credit memos generally occur when something went amiss with an order. If you and your staff know how to create a credit memo in Sales Order Invoice Data Entry by heart, your company can better ensure that the error is addressed quickly and efficiently.

Of course, no company wants to make a mistake with an order. Mistakes annoy customers. However, they also provide a golden opportunity for your business to showcase your commitment to customer care, and they can turn an indifferent customer into a loyal evangelist for your company’s service and products.

In short: When you can deliver a fast, effective, expert resolution using a credit memo, it can restore customer confidence and, paradoxically, lead to greater levels of customer satisfaction — as well as repeat buying habits.

How to Enter a Credit Memo in Sales Order Invoice Data Entry in Sage 100

This process requires you to create the credit memo in Sales Order Invoice Data Entry and enter all values as positive amounts. Then, you will update your Sales Journal and Transaction Register.

1. Begin this process from the Sales Order Invoice Data Entry screen.

To get to this screen:

Open Sales Order
Navigate to the Main menu
Select Invoice Data Entry

Shows how to navigate to the Sales Order Invoice Data Entry screen in Sage 100 to begin creating a credit memo

2. From the Sales Order Invoice Data Entry screen, click the Next (Invoice No.) button.

Fill in the following information:

Customer No. — Enter the customer to whom you wish to apply the credit memo
Invoice Type — Choose Credit Memo from the dropdown
Apply to Inv No. — Find and apply the correct invoice you wish to credit

Note: If the Apply to Invoice No. field is left blank, a separate credit memo will be created in Accounts Receivable. You must then apply this credit memo through cash receipts entry.

Shows which fields to modify to create a credit memo in Sales Order Invoice Data Entry in Sage 100

3. Click the Lines tab and select which items are to be credited.

4. Enter all quantities and amounts as positive amounts.

Note: Even if you are crediting the entire invoice, you must still select each item individually.

Shows how to select the Lines tab and choose the items which are to be credited on a credit memo for Sales Order Invoice Data Entry in Sage 100

5. Print the Credit Memo (optional).

6. Print and update the Daily Sales Reports / Updates (Sales Journal).

Shows what to look for on your updated Daily Sales Order Sales Journal after applying a credit memo in Sage 100

7. Print and update the Daily Transaction Registers / Updates.

Displays how a credit memo will show up in your Daily Transaction Register in Sage 100

Additional Note

If you inadvertently invoiced the entire sales order, creating a credit memo for this invoice will not “re-open” the original sales order. You will need to enter a new sales order.

Conclusion

Credit memos in Sage 100 are essential tools for correcting invoice errors or processing returns after posting. Whether addressing mistaken invoice dates, incorrect customers or items, duplicates, or customer returns, the Sales Order Invoice Entry screen provides a straightforward solution for making these necessary adjustments.

While credit memos typically arise from order issues, they present an opportunity for you to demonstrate exceptional customer service. By efficiently resolving problems through credit memos, your business can transform potentially negative experiences into positive ones, rebuilding customer confidence and creating loyal advocates for your products and services.

Next Steps

If you have questions about creating a credit memo in Sales Order Invoice Data Entry in Sage 100, Ardent Consulting is at your service. Our team of experts is ready and eager to help you navigate your system challenges and optimize your business’s potential. We prioritize your business’s health and are committed to supporting your journey every step of the way.