How to issue a credit memo in Books?

TB Books · credit-memos · Last updated August 17, 2026 · Version 1

This process works in apps: TB Books

This article will teach you how to create a credit memo for returns or adjustments so AR and stock update correctly.

Credit memos return value to a customer and behave as the inverse of invoices for AR and stocked items — returns add quantity back and recalculate weighted average cost. Use them for product returns and billing corrections instead of editing closed invoices. Linking to the original sale story keeps month-end audit clean.

Steps

• Open Orders → Credit Memos.
• Click New Credit Memo and select the customer.
• Add lines for returned items or financial adjustments.
• Confirm quantities, costs, and reason notes.
• Review totals and tax impact before saving.
• Save or finalize so AR and stock update.
• Apply the credit to open invoices or leave unapplied per your AR workflow.

Conclusion & best practices

Link credits to the original invoice story whenever possible for audit clarity. Remember credit memos add stock back — voiding later reverses that carefully and must not be followed by a delete that double-reverses. For non-stock adjustments, document the reason in notes for the next accountant.