Sales Reports will display transactions that posted to Income or Other Income type of accounts. If credit memos are not showing on Sales Reports, check the GL Impact of the transaction record.
If a credit memo hits the COGS account, it is an expected behavior that this will not be displayed on Sales Reports. Users may also check the account selected for the item record.
1. Pull up the Credit Memo.
2. Click the Item name.
3. On the item record, go to Accounting tab.
4. Verify if the account set on the Item is a non-Income or Other Income type of account.