I have sold 2 items from my inventory that the customer wishes to receive a refund for. The customer has thus paid a 50% deposit. The customer would like that payment allocated to future products that they purchase; so refund to be allocated to a customer credit account.
How do I raise a credit note for such a situation?
First of all, did you issue sales invoice to this customer? If not, you need to. Let’s say the invoice was for $1,000.
Customer paid $500 so this was applied to invoice and he still owes you $500.
Now if customer has asked for refund of the whole invoice. Go to Credit Notes and create new credit note for customer for $1,000.
What will happen is that $500 from this credit note will be allocated to pay the remainder of sales invoice.
And the reminder $500 will be available in his credit account for future purchase.
This customer has multiple sales invoices that deposits have been paid for. How would I assign the payment to the particular invoice I am refunding?
Also how do I get the two items back in my inventory so it adds up?
I have created a journal entry and resolved the customer credit issue.
How would i adjust inventory to reflect that the two items the customer has bought are now going to be with me to sell to a different customer?
Please do let me know.
Not sure what do you mean by journal entry. You don’t need to create journal entry in this case.
If you’ve received inventory item back from customer, then on credit note, use Sales of inventory items account, then select inventory item.
Credit note will reverse that sale of inventory item and put it back to inventory.