How to Credit Memo

Credit Memos are used to issue store credit, or to refund a customer withour reopening the invoice or impacting its balance.

A Credit Memo can be created for returned items, an order adjustment, or a general credit amount. The selected Credit Handling option determines how the amount will be processed.

To reverse a Payment and reopen the Invoice for payment, use a Payment Refund instead.

Credit Handling

The selected Credit Handling option determines whether the Credit Memo adds credit to the Account or refunds the customer.

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Link Items

Use Link Items to choose how the Credit Memo is calculated:

• Enable Link Items to credit items from an Invoice or add standalone products.
• Leave Link Items disabled to enter a custom amount.

Select + Add Items to return to Invoice and item selection.

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Create a Standalone Credit Memo

A standalone Credit Memo can be created without starting from an existing Invoice.

1. From the Control Panel, go to Customers > Accounts and open the applicable Account.
2. Select Create Credit Memo.
3. Choose how to build the Credit Memo:
   • Enable Link Items to select items from an Invoice or add Standalone Item(s).
   • Disable Link Items to enter custom credit amounts.
4. Click Select Customer and choose the Customer and/or Company the credit belongs to.
5. Build the credit:
   • Item-based: Click Add Products, add the Standalone Item(s), and enter the Qty to Credit Memo for each item.
   • Amount-based: Enter the credit amount and, when applicable, the shipping, tax, and discount totals.
6. Select the appropriate Credit Handling option:
   • Add Credit to Account
   • Credit & Refund Online
   • Credit & Refund Offline
7. Review the Grand Total. This is the total amount that will be credited or refunded.
8. Choose whether to enable Email Customer.
9. Click Create Credit Memo.

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Create a Credit Memo from an Invoice

Create a Credit Memo from an Invoice when crediting or refunding the whole Invoice, specific items, or partial item quantities.

1. From the Control Panel, go to Orders and open the applicable Order.
2. Open the Invoice.
3. Select Credit Memo from the Invoice actions.
4. Click Add Item(s) from Invoice and select the Invoice.
5. Choose what should be credited:
   • The whole Invoice
   • Specific line items
   • Partial quantities from a line item
6. Enter the Qty to Credit Memo for each applicable item.
7. Enable Return to Stock for any credited quantities that should be returned to inventory.
8. Click Update to recalculate the Credit Memo totals.
9. Select the appropriate Credit Handling option.
10. Review the quantities, tax, discounts, and Grand Total.
11. Choose whether to enable Email Customer.
12. Click Create Credit Memo.

Tax and discounts from the Invoice are prorated automatically based on the credited lines and quantities. Changing the credited quantity of one item does not change the unit price of another item.

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Return Credited Items to Stock

Enable Return to Stock for an item when its credited quantity should be added back to inventory.

Leave Return to Stock disabled if the item was not physically returned or should not become available for sale again.

The inventory selection is independent of the selected Credit Handling option.

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How Credit Is Applied Automatically

When Add Credit to Account is selected, Zoey adds the Credit Memo balance to the Customer or Company Account.

The credit is automatically applied to the Account's oldest eligible open Invoices. If the Credit Memo is larger than the available Invoice balances, the remaining amount stays available on the Account for future use.

A single Credit Memo can therefore be:

• Fully applied to one Invoice
• Divided among multiple Invoices
• Partially applied with a remaining available balance
• Left available when there are no eligible open Invoices

Credit is applied to Invoices rather than directly to Sales Orders.

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Online and Offline Refunds

All refunds are created through a Credit Memo by selecting one of the refund options under Credit Handling.

Credit & Refund Online

Select Credit & Refund Online to create the Credit Memo and submit the refund through an eligible online payment transaction.

The option is available only when a supported payment transaction can be refunded online.

Credit & Refund Offline

Select Credit & Refund Offline when the refund will be completed outside Zoey.

Zoey creates the Credit Memo and records the refund, but it does not transfer funds to the customer.

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Void a Credit Transaction

Credit transactions can be voided when a credit needs to be reversed.

Locate the applicable credit transaction and select Void. Review the Customer or Company balance after voiding to confirm that the transaction was reversed correctly.

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Related Guides

• Credit Memos
• Credit Memo FAQs