Create a Credit Memo / Refunding a payment
A credit memo is a document that lists the amount that is owed to the customer. The amount can be applied toward a purchase, or refunded to the customer. You can print a credit memo for a single order, or for multiple orders as a batch, or group. Before a credit memo can be printed, it must first be generated for the order.
Credit Memo
To create a credit memo:
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1. |
On the Admin menu, select Sales > Orders. |
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2. |
Find the order in the list, click to open the order. |
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3. |
Then, click on invoices and select the invoice you would like to refund. When in the invoice, click the Credit Memo button.
Note: In the sales order, you can only do an offline refund which will not automatically refund a credit card if that was used for payment.
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Credit Memo from invoice
The New Credit Memo page looks similar to the completed order page, with an Items to Refund section that lists each item from the invoice.
Credit Memo page
New Credit Memo Details
If an online payment method was used, you will not be able to edit these fields.
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4. |
Do one of the following: |
- If the product is to be returned to inventory, check the Return to Stock checkbox.
- If the product will not be returned to inventory, leave the checkbox blank.
The Return to Stock checkbox appears only if you have set the inventory Stock Options to “Decrease Stock When Order Is Placed.”
Return to stock
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5. |
Complete the following: |
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a. |
In the Qty to Refund box, type the number of items to be returned and press the Enter key to record the change. The Update Qty’s button appears. |
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b. |
Set the Qty to Refund of any items not to be refunded to 0. |
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c. |
Click the Update Qty’s button to recalculate the total. (The amount to be credited cannot exceed the maximum quantity that is available for refund.) |
Update Quantities
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6. |
In the Refund Totals section, do the following, as applicable: |
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a. |
In the Refund Shipping field, enter the amount that is to be refunded from the shipping fee. This field initially displays the total shipping amount from the order that is available for refund. It is equal to the full shipping amount from the order, less any shipping amount that has already been refunded. Like the quantity, the amount can be reduced, but not increased. |
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b. |
In the Adjustment Refund field, enter a value to be added to the total amount refunded as an additional refund that does not apply to any particular part of the order (shipping, items, or tax).
Typically for a partial refund you do not want to set this field.
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c. |
In the Adjustment Fee field, enter the new total value of the fee which must be less than the original total. The refund will be the difference between the original fee and the adjusted fee.
Typically for a partial refund this is where you want to set the new total value of the order.
Note: This amount is not related to a specific section of the order such as shipping, items, or tax.
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Refund adjustments
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d. |
To add a comment, type the text in the Credit Memo Comments box. |
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e. |
To send an email notification to the customer, select the Email Copy of Credit Memo checkbox. |
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f. |
If you want to include the comments you have entered, check the Append Comments checkbox. |
The status of a credit memo notification appears in the completed credit memo next to the credit memo number.
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7. |
To complete the process and generate the credit memo, select one of the following refund option buttons, depending on the payment type: |
- Refund (if you want to refund via your online pmt gateway - eg. credit card payments)
- Refund Offline (if you plan to refund in cash)
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8. |
To add a comment to the completed credit memo, scroll down to the Comments History section, and enter the comment in the box. |
- To send the comment to the customer by email, select the Notify Customer by Email checkbox.
- To post the comment in the customer’s account, select the Visible on Frontend checkbox.
Below the credit memo is a complete list of all activity related to the order.
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9. |
Click the Submit Comment button. |
Credit Memo Submit Comment
Keywords: orders, invoices, refund, credit memo, credit, how to refund, 
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