if i create a credit memo to offset a overpayment. i would need to select an item. how do i set up an item that also credits accounts receivable? or should it get posted to something else? what would do when the customer uses the credit memo

AI generated answer (using internal Slack threads):

When you create a credit memo to offset an overpayment, you would indeed need to select an item. To set up an item that also credits Accounts Receivable (A/R), you can create a non-inventory item that maps to a specific GL account and place that item on a credit memo. This will take care of the debit side of a credit memo. However, it's important to note that you cannot change the credit side of the credit memo to go back to different accounts than the default on the item. The credit memo by default hits Sales and A/R (whatever accounts they came out of on the invoice). When the customer uses the credit memo, it reduces their open A/R balance as well as decreasing Income. This is because the credit memo transaction is Dr Revenue, Cr A/R. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******