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Sales returns

When selling merchandise to customers, sometimes things don't go quite as planned. Occasionally, customers may return items of inventory for various reasons. This topic explains where and how a sales return is recorded in Peachtree.

In the Customers & Sales Navigation Center click the Credits and Returns icon and select New Credit Memo from the drop down list provided.

Select new credit memo

This opens the Credit Memos window where you can enter the details of the sales return into Peachtree. The following screenshot and reference table show step-by-step instructions on how to enter the sales return from a customer into the Credit Memos window in Peachtree. Note that each step is assigned a reference number to help you identify the appropriate field or icon in the screenshot of the Credit Memos window.

The Credit Memos window with reference numbers

Credit memo window
Step Peachtree
field or icon
Action
1 Customer ID Select the name of the customer.
2 Bill To Peachtree automatically displays the address of the customer.
3 Date Click the calendar icon to select the date of the sales return.
4 Credit No. If you leave the Credit No. field blank, Peachtree will not automatically assign a credit number when you save the credit memo. However, Peachtree will automatically assign an credit number to your credit memo if the credit memo is printed.

If you are completing the Peachtree Practice Set, you are not asked to print credit memos, only to save them. Instead, you are advised of the credit memo number to use, so you should enter that number into the Credit No. field.

Even though Peachtree will still journalize the sales return without a credit number, you should still ensure that an credit number is recorded for each credit memo.
5 Apply to Invoice No. In the drop down box next to Apply to Invoice No. select the invoice number relating to the returned items. Peachtree automatically populates the rows below with the items sold on that invoice.
6 Returned Record the number of items returned.
7 Amount column Peachtree automatically calculates the value of each item type returned.
8 Sales Tax If the original invoice had sales tax applied to it Peachtree automatically calculates the amount of sales tax that will no longer be collected from the sale.
9 Credit Total and Credit Applied to Invoice Peachtree automatically calculates the total of the Amount column (Credit Total) and the amount applied to the invoice.
10 Save icon Once you have reviewed the information in the Credit Memos window, remember to click the Save icon to record the sales return, journalize the transaction and post it to the applicable accounts.

And just to double check...

If you want to check that the credit note has been applied to the invoice, open the related invoice in Peachtree. For instructions on how to find transactions in Peachtree, including how to open an invoice, see the Find transactions page in this learning center.

In the following screenshot notice that the amount of the credit memo appears in the Other Applied Credits line near the bottom of the window. The amount reported as Net Due has been updated to reflect that the amount of the credit memo has been subtracted from the Invoice Total.

The Sales/Invoicing window with the credit memo applied to it

Credit applied to invoice Return to the top