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Overview

Credit Memos reduce amounts owed by customers. They can be issued for returns, billing adjustments, or service credits, and can be applied against outstanding invoices.

Credit Memo Statuses

StatusDescription
DraftInitial state
Pending ApprovalSubmitted for approval
On HoldTemporarily held
ApprovedApproved
RejectedRejected
VoidedVoided
Partially AppliedPartially applied to invoices
AppliedFully applied

Endpoints

Accounting Impact

When a credit memo is posted:
  • Debit: Revenue account (reduces revenue)
  • Credit: Accounts Receivable (reduces customer balance)