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How to Manage Credit Memos

What is a credit memo?

A credit memo is a way to give a customer an account credit rather than a refund (for refunds see Refund Receipt). Credit memos are saved as unapplied payments and can be used to reduce the balance of an invoice. 

Where are credit memos?

  1. While on a customer record, click Accounting.
  2. Under Invoices click Credit Memos

Create a new credit memo

In the Credit Memo section, click Add.

Note: This will open up a stepped process. 

1) Get Started

Get Started

  1. Select Itemized or Fixed Amount
    1. An itemized credit memo allows the credit memo amount to be calculated by selecting items from past invoices.
    2. A Fixed Amount credit memo allows you to enter the amount without selecting a billable item. Note: this will create a new invoice billable item called CREDIT_MEMO.
  1. Pre-Populate:  If Itemized is selected, select the items to be pre-populated in the Credit Memo.
  2. Click NEXT.

2) Details

Details

  1. On the Details tab, fill out all the required fields. 
  2. Make other changes if needed.
  3. Click SAVE. Optionally, the Save dropdown menu allows you to
    1. Save & Close,
    2. Save & Download/Preview, or
    3. Save & Send the newly created Credit Memo. 
      1. Choosing one of these options will complete the selection and close the window. Clicking Save, only, leaves the window open to Apply to Invoice or Send the Credit Memo with a customized subject line and message (see explanations, below).

3) Apply to Invoice

Apply to Invoice

  1. On the Apply to Invoice tab you will see a summary of the credit memo and the amount that is unallocated.
  2. Allocate To Open Invoices: A list of invoices is shown. The unallocated amount can be applied to one or more invoices by selecting the toggle button on the right and adjusting the Payment amount.
  3. Click SAVE.

3) Send

Send

  1. On the Send tab, fill out all the required fields. 
  2. You can change the Subject or add a Message.
  3. Click Preview to see a copy of the PDF Credit Memo that will be sent.
  4. Click SEND to send the PDF Credit Memo.

View/edit a credit memo 

  1. Navigate to the Credit Memos section.
  2. Click on the desired credit memo row.
  3. Edit the fields as needed.
  4. Click Save.

 

Delete a credit memo

Note: you must first unapply a credit memo from all invoices before deleting.

  1. Navigate to the Credit Memos section.
  2. Click on the row of the desired credit memo.
  3. While on the Details tab of the Credit Memo, click Delete in the lower left of the page.
  4. A confirmation window will appear. To confirm, click Delete.

 

Apply a credit memo to an invoice

  1. On the Apply to Invoice tab you will see a summary of the credit memo and the amount that is unallocated.
  2. Allocate To Open Invoices: A list of invoices is shown. The unallocated amount can be applied to one or more invoices by selecting the toggle button on the right and adjusting the Payment amount.
  3. Click SAVE.
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