Get started with credit memos
A credit memo decreases the amount a customer owes and can reverse all or part of an earlier charge. Create a standalone credit memo or retain source details by creating one from an invoice or return authorization, then apply the credit to an open or future invoice or refund an eligible remaining amount.
There are three main types of credit memos:
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Standalone credit memo – An independent credit memo that is not linked to a return authorization or invoice.
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Credit memo from return authorization – A credit memo generated with prefilled values and linked to the original return authorization.
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Credit memo from invoice – A credit memo generated with prefilled values and linked to the original invoice.
There are several ways to create credit memos. For more information, read Create a credit memo.
Each credit memo consists of the necessary information about the credit, such as customer details and items to be credited. The Summary includes discounts and taxes that are used to calculate the total amount of credit and the unapplied amount to your customer’s account.
You can use a credit memo to reverse a charge you billed to a customer. For example, a customer returns part of an order after you’ve issued an invoice. To decrease the amount of this open invoice, create a credit memo and apply the credit as payment.
When a customer receives a credit memo after paying an invoice, there are two ways to use the credit. The amount can either be refunded to the customer or applied to any of their open or future invoices.
To add, remove, or reorder columns in the Credit memos page, select the Show column personalization icon above the Actions column. You can then save the new order of the columns by selecting More actions > Save as new list view. Return to the More actions menu to rename, delete, or save changes to your saved list. To switch between views, open the drop-down beside the page’s title Credit memos.