Clearing Unused Credit Memos
If you have issued Credit Memos to customers, which are not going to be used, follow the Bad Debt procedure, linked below, to clear them. This solution provides a brief overview.
Do not use bogus Finance Charges on a Receive Money transaction as this may cause problems with Open Invoice reporting. (5705)
To Clear a Credit Memo:
1. Create a Misc. Sale in an offsetting (positive) dollar amount for the Customer. After entering the Amount, click the Posting button (feather) to choose an appropriate account to 'write off' the expired credit memo.
2. Create a Receive Money transaction for $0 (in the green arrow). In the Apply column, enter the positive amount for the new 'sale' and the negative amount for the expired credit memo. The total of these Apply amounts is zero.
3. Save the $0 Receive Money. Include it on some future Deposit.