V9 - Using a return to issue customer credit (credit memo)

When adding a return, if you want to issue a credit memo to the customer in QuickBooks Online, simply check the Create credit memo box on the return. SOS will generate the credit memo and sync it to QuickBooks. The amount used is the total Credit amount of all line items on the return.

How credit amounts are determined by SOS

For each line item, the credit amount is initially based on the unit price. How the return is created affects the Unit price value initially added to the return.

If adding a line item, select the item from the dropdown list and only the Description is retrieved from the item definition. You would need to manually enter the Quantity being returned, the Unit price, and the Restock value. The value in the Credit amount column is calculated by multiplying the Quantity by the Unit price.
If the line item was added when generating the return from another transaction, you may edit the Quantity, Unit price, Credit amount, and Restock value as needed, based on what is being returned. Decreasing the Quantity does not automatically recalculate the Restock value of that line. This must be manually edited.

The total Credit amount can be found just below the line item area.

Handling partial customer credit

If you need to give a customer partial credit on a return or are charging them shipping or other fees, create an item to represent the customer fees. In the item definition, set the Type to Service or Non-inventory, and keep the Always shippable box checked. Then you can add it to the return transaction.

The sample return RTN2098 below shows how to enter this information on the transaction.

Sample return RTN2098 deducts a freight charge and restocking fee from the credit amount on the credit memo.

Although the Credit amount entered for the Medical Tube item is for the full 250.00, the total credit due to the customer is offset by a Freight Charge and a Restocking Fee, which the customer is responsible for.

So that the Credit amount accurately deducts the charges for those line item entries, the Unit price for both Freight Charge and Restocking Fee have been entered as negative numbers:

For Freight Charge: The Unit Price (-35.00) x Quantity (1) = a Credit amount of -35.00 for that line.
For Restocking Fee: The Unit Price (-5.00) x Quantity (1) = a Credit amount of -5.00 for that line.

The total Credit amount given to the customer for this sample transaction is 250.00 - 35.00 - 5.00 = 210.00