Credit Memo are used to reverse any Invoices after a Return Shipment has been posted.

1. Go to Search → Sales Credit memo and create a new credit memo
   
   
   
2. Fill in Sell-to Customer No.
   
   
   
3. On the Actions ribbon, use the Get Posted Document Lines to Reverse Function
   
   
   
   
4. In the Pop-up page, change the Document Type Filter to Posted Return Receipts and use the filters to find the posted return.
   
5. Post the Credit memo