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How to create a credit memo in Magento

  1. From Magento Admin panel to Sales→Orders
  2. View Order
  3. In the top right corner click "Credit Memo"
  4. Under "Items to Refund" mark the "Return to Stock" checkbox
  5. Enter Quantity to Refund
  6. Click on "Update Qty's"
  7. Click "Refund Offline"

Issuing a Credit memo is an important part of Magento order processes.

That is why this tutorial shows in detail how to issue a Credit memo in case your customer demands a refund.

We will start in Magento Admin Panel, from where we will navigate to Sales.

From the menu, we will choose Orders menu item.

See the screenshot:

Invoicing an order in Magento

Next screen will show you all of your previous orders.

In our tutorial, we have an order that is completed, which means that once it was placed by the customer (or administrator from Admin Panel), it was invoiced and shipped.

How to create credit memo in Magento

Now you should go ahead and click on View, to see more details about the completed order that you want to make a Credit memo for.

After clicking on the View link, you will see this (click on the screenshot for a better overview):

How to issue credit memo in Magento
You can see all the details about your order: account information, billing and shipping address, and items that were ordered.

The only thing that differentiates this process from the one where we created an invoice, for example, is that, once the order is complete, issuing a credit memo is the only option you are offered in the upper right corner of the screen.

Take a look:

How to issue credit memo in Magento
So go ahead and click on the Credit Memo orange button in the upper part of the page.

A new screen will appear with basically all the information that the previous one had.

There are two things that you should have a closer look at, however.

Since you’re issuing a credit memo, you need to set up two important things: if you want to return the item in stock and what the quantity that you want to refund is.

Under Items to Refund, you will see the price of a product, quantity, a checkbox with an option to return it to stock, quantity to refund, and total amount.

How to issue credit memo in Magento

If you want to return the item to stock, mark the checkbox.

If you want to edit the quantity that you need to refund, make sure that after adding the wanted quantity, you also save it by clicking on the Update Qty’s button.

Magento also offers you an option to refund shipping.

You should simply enter the amount and refund everything to the customer by clicking the Refund offline orange button in the bottom of the page.

It will appear like this:

How to issue credit memo in Magento

Note that you have an option to notify the customer that you have created a credit memo and you can do so by marking Email Copy of Credit Memo check box.

Success page will follow, and you’re done!