Customer Credits and Refunds
After you receive an item on a return, you can credit the customer in the amount they paid for the item.
The credit for the return, depending on the type of return authorization you created, can be:
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A credit memo – a record of the credit a customer is due. For more information, see Customer Credits.
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A customer refund – a transaction that records the return of funds to a customer. For more information, see Customer Refunds.
Note:A customer refund is not the same as a cash refund. A cash refund transaction records the return of money to a customer who immediately paid for goods or services using cash, a check or a credit card. For details about this type of transaction, see Refunding a Cash Sale.