Credit Memo Refund
Derek Deng avatar
Written by Derek Deng
Updated over a week ago

What is a credit memo and when is it used

A credit memo refund is performed when customer requests a refund for already paid products/services. Customer agrees to keep the refunded money in his balance and to be able to apply it on new purchase of products/services. Credit memo refunds affect customer balance by increasing money to be used on future invoices.

Credit Memo Refund

Creation: Credit Memo refund can be created from click the universal add "+" button and select refund or from customer record.
QuickBooks Online sync: Refund is synced to QuickBooks Online as Credit Memo.
Customer Credit Balance: Customer credit balance is increased by the Refund amount.
Usage: Refund can be applied on invoice as an invoice payment.

Authorize.Net sync: Credit Memo is not synced to Authorize.Net.

Create a credit memo refund

Credit memo can be created from universal add button “+” or from a customer record’s refunds section

Option 1: Using Universal Add Button

Click on universal add button ‘+’ and select refund. A refund window will open with ‘Credit Memo’ as the default refund type.

Option 2: From Customer Record

Navigate to the Refunds section and click the ‘+Add new’ button to create a new credit memo for the customer. The customer information will automatically be pre-filled for you.

Either way you choose, the same refunds screen will pop up. Select a Product or Service and tax (if applicable) that will issue the refund amount as it is required and Save.

Again, note that performing this action will decrease the customer balance.

Note that you can set the default refund item so that you will not have to manually enter in a refund item each item as it will automatically prefill. 

Apply a Credit Memo to an Invoice

Open any Invoice that is not paid or partially paid (has a balance due amount). Navigate down to Credit Memos section and expand it. If the customer record has credit memos on their account you can apply their credit amount to cover the invoice amount. To do so in the Actions column click the Apply button.

Now select the amount of the credit memo you would like to apply to the invoice. By default the credit memo amount will apply the maximum amount to cover the invoice balance due, however you are able to edit the value if needed beforehand. Click on Apply button to apply the credit memo amount.

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