How to issue a credit memo in Books?

TB Books · credit-memos · Last updated September 23, 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. A wrong price on an invoice that is still open, or already paid, can be an edit that keeps the payment and reopens the remaining balance. 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.