Add a credit memo reason to credit memo to determine which GL account is impacted. You will need to add a general ledger account before adding the Credit Memo Reason if the GL account does not exist.

Create a credit memo reason

  1. Open the CR Memo Reason tab on the Accounting Setup screen (Administration > Accounting > General Setup > Credit Memo Reasons).
  2. Click Add.
  3. Enter a Description of the credit memo.
    • Select a GL Account, or click Add Account to create a new GL account.
  4. Click OK when complete.
    • Now that the credit memo reason has been created, you can use the New Credit Memo screen to create a credit memo using the new credit memo reason.


When manually creating a new credit memo, you cannot select a credit memo reason that is set up as an accounting default.

•Credit memos can be manually created using the Credit Memos tab on the Customer screen (Customer > Open a customer > Credit Memos tab > Add button).

•Credit memo reasons are set up as accounting defaults using the Reasons tab on the Accounting Defaults screen (Administration > Accounting > General Setup > Accounting Defaults).

Security Permissions Required

Administration – Accounting
*Can Access Accounting Tree Branch

Related Reports

  • Customer Account Credit Liability (Administration > Reports > Accounting > Accounts Receivable > Customer Account Credit Liability) - View customers with available account credit as of a specified date