Credit Memo FAQs

How to issue store credit?

Create a Credit Memo to credit an individual Customer or Account. You can issue a standalone Credit Memo from the Account, or the Order and its Invoices.

Why was my customer's card authorized for the full amount when they had credit?

For payment methods that authorize now and capture later, the authorization always covers the full order total. Credit is applied to the Invoice in a separate step after the order is placed, which reduces the amount actually captured. The Customer isn't charged twice.

Why can't I cancel this Credit Memo?

A memo can only be canceled while it's Unapplied. Once any credit from it has been applied to an Invoice, it can't be canceled. To remove credit that hasn't been used yet, use Refund Remaining Balance with the offline option. To take back credit that's already applied to an Invoice, void its credit transaction. Voiding adds the amount back to the account as available credit, so you can then cancel the memo once none of its credit is applied, or remove the credit with Refund Remaining Balance. See Reduce or Remove Credit on an Account and Void a Credit Transaction.

Which Credit Memo gets used first?

The oldest one. All memos for the Customer and their Company form a single pool, and credit is consumed oldest-first by creation date. Customer-owned and Company-owned credit have equal priority.

What happened to Store Credit?

Store Credit is being retired and replaced by Credit Memos. On a Customer's or Company's My Account page, the credit section is now labeled Available Credit and reflects their Credit Memo balance. Pre-V8 Store Credit balances were converted to Credit Memos, and the Store Credit history is saved in a comment on the account's oldest Credit Memo. If there's no credit history, the history table is hidden.

Does credit get applied to Quotes?

Available credit is reserved when a Quote is created, just as it is for an Order. The credit is not applied as a discount to the Quote. It remains reserved until the Quote is converted and the resulting Invoice is created.

Can I create a Credit Memo without an Invoice?

Yes. You can create a standalone Credit Memo for a Customer or Company without linking it to an Invoice or specific items.

You can also link a Credit Memo to an Invoice and credit the entire Invoice, selected items, or partial quantities.

How is credit applied?

• Credit is applied automatically to the oldest open Invoice. If there are no open Invoices, it remains available for the next Invoice.
• Credit Memos are used oldest-first.
• Credit belonging to a Customer and their Account is treated as one shared pool.

Can credit be applied to a Sales Order?

No. Credit is never applied to a Sales Order as a discount or during checkout. The Sales Order will retain its total due until credit is applied to the Invoice.

Available credit may be reserved during checkout and applied when the Invoice is created. If the Order is canceled before invoicing, the reservation is released.

Can I refund a Credit Memo?

Depending on the available Credit Handling options, you can:

• Create the Credit Memo and issue a Refund.
• Create the Credit Memo without a Refund and leave the credit on the account.

The available options depend on whether Zoey can process the Refund online.

How do I cancel a Credit Memo?

You can cancel a Credit Memo only while it is fully Unapplied. To cancel a Credit Memo in the Zoey Admin:

1. Go to Orders > Credit Memos and open the Credit Memo you want to cancel.
2. Open the three-dot menu in the top right and select Cancel.

Canceling the Credit Memo undoes the credit. If you need to correct or reassign the credit, create a new Credit Memo with the correct details after canceling the original.

How do I reduce or remove credit on an account?

Cancel the Credit Memo if none of its credit has been used, then create a new memo for any credit the account should keep. If part of the credit is already applied to an Invoice, use Refund Remaining Balance with the offline option to remove what's left without sending money to the customer. The offline refund removes the full remaining balance, so create a new memo for any credit the account should keep.

For the full steps, see Reduce or Remove Credit on an Account.

What happens when credit covers the full Order?

The behavior depends on the payment flow:

• Authorize & Capture — The Customer receives a $0 checkout experience.
• Authorize Only — The card is authorized for the full Order amount. Credit is applied before capture when the Invoice is created. If the Invoice is fully covered, nothing is captured.

How can I track a Credit Memo?

Each Credit Memo has its own ID, status, related records, and comments. These details show how and when the credit was applied to Invoices and Refunds.

Find the applied Credit Memos through the Order or Invoice. Find all of your Credit Memos in the Orders > Credit Memos list. See all of an company's available Credit balance in their Account or through the list.