Unable to Apply a Gift Certificate Even if the Redemption Amount is Greater than the Sales Amount> An Error Message Appears on Screen: Gift certificate redemption amount exceeds available amount on the gift certificate.

If a Credit Memo is fully applied against the Invoice that recorded the issuance of the Gift Certificate; the system reduces the redeemable amount of the Gift Certificate equal to the total amount of the Credit Memo applied.

The appropriate way to record the issuance of a Gift Certificate for free is to set a Discount within the Invoice that recorded the issuance of the GC.  This may either be by adding a Discount line item or by specifying a Discount under the Discount Item field of the Invoice form.