Credit Memo - Which Item Account
When I create a credit memo to adjust a short payment on an invoice for services (no product), do I use the same item account I used when I created the invoice?
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afMoknntSr4izzacwZ5xHE
02/10/11 9:27am PST
Viewed by asker 02/10/11 11:07am PST
Viewed by asker 02/10/11 11:07am PST
1 Reply
02/10/11 10:13am PST
Latest post
Yes, that way you don't pay sales tax on the shortage.
Unless: you want to track the write offs, then you would create a separate income account maybe named credits & discounts.
Another thought: you don't have to create a credit memo. When in "receive payments" window you can designate the underpayment to write off to a specified account. quicker than a credit memo. Great for small shortages.
