When a customer returns items previously purchased, you can return the items to inventory and create a customer credit in a few easy steps:

• From the Sales Command Center, select Enter Sales
• Select Credit Memo as the transaction type
• Enter the customer's name
• Click the Layout button and select Item
• Enter the number of items being returned, using a positive number in the 'Return' column. When you enter the item number, the 'Total' column will show a positive amount. This represents the amount of credit you will be giving the customer
• When you record this sale (or Credit Memo), the item(s) will be returned to inventory, and your customer has a credit recorded on their account.

If you wish to issue a refund to the customer, select the Returns and Credits tab in the Sales Register. Highlight the credit and click the Pay Refund button. Alternatively, you can apply this credit to another sale for the same customer. If you are using the Category feature, this credit memo must have the same Category as the sale invoices you are applying it to.

You can also record a Credit Memo by clicking the New Credit Memo button in the Returns and Credits area of the Sales Register.