How do you Credit the Freight to the customer? this invoice was suppose to be Bill Third Party but they got charged for Freight, so how do you credit customer just for the freight. I thought about creating item called Freight and using that item on the credit memo but is there a different way to handle this.

The way you describe is how I've always done it. Though I presume you could probably create a zero dollar item and then set the shipping cost field, but no promises there.

shipping cost field? the Charge was for $58, I was just going to give them credit memo for $58, you mean I am suppose to give them shipping cost credit to have G/L impact correct? but for that when I set up the freight item, I can use the same account right? I am not accounting expert so if the question sounds dumb i am sorry