We are starting to work on issuing credit memo against the printed invoice. This is different from writing-off or bad debt treatment of an existing invoice. As a credit memo, it can be part of the invoice batch and it shares with the invoice numbering system. For accounting treatment, only the net amount will be considered as sales.

Using credit memo to offset sales:

  • DR Sales
  • CR A/R

Using write-off to offset sales:

  • DR Sales Discount
  • CR A/R