A customer is trading in their old equipment for new equipment. I would prefer not to use discounts on the order.  Is there another way to offer a customer “Trade-In” credit towards the purchase of their new equipment?


Create a Credit Memo under the customer for the trade-in value and lock it to the sales order. You can lock a Credit Memo to an order by following these steps:

  1. Go into the customer's profile
  2. Click on the Credit Memos tab
  3. Double-click on the Credit Memo
  4. Click the Locks tab
  5. Click Add Lock
  6. Enter the amount you want to lock to the order
  7. Click Link Order 
  8. Select the order that you want to lock the credit memo to and click OK
  9. Click OK to save the Credit Memo

The credit will automatically be applied to the order upon invoicing. 

Before you create the Credit Memo, consider what Credit Memo Reason you want to use, as they are attached to specific GL accounts. You may want to consider creating a new Credit Memo Reason specifically for trade-ins.

To create a new Credit Memo Reason, please follow these steps:

  1. Go to Administration>Accounting>General Setup>Credit Memo Reasons
  2. Click Add
  3. Name the Reason
  4. Assign the GL you wish to associate this reason with
  5. Click OK

Following these steps will affect your Gl in the following ways:

  • It will credit your AR account (which decreases its balance)
  • It will debit the GL you associated the credit memo with.