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Credit Memos

Issue credit memos to adjust invoices for returns, discounts, or billing corrections.

What is a Credit Memo?​

A credit memo is a document that reduces the amount a customer owes. Use credit memos for:

  • Returned items or cancelled services
  • Price adjustments or negotiated discounts
  • Billing corrections or errors
  • Promotional credits

Accessing Credit Memos​

  1. Navigate to a project's Financials > Client Invoicing
  2. Click the Credit Memo tab
  3. View all credit memos for the project

Credit Memo List Columns​

ColumnDescription
ID / TitleCredit memo number (CO #) and title
ProjectAssociated project
TypeFlat Fee or Line Item
TotalCredit amount
Amount AppliedAmount applied to invoices
BalanceRemaining credit available
StatusNot Released or Released

Creating a Credit Memo​

  1. Click New and select New Credit Memo
  2. Complete the credit memo form
  3. Click Save, Save & Release, or Apply to Invoice

Credit Memo Information​

Project​

Select the project for this credit memo. If you opened from within a project, this field is pre-filled and locked.

Title​

Enter a descriptive title (e.g., "Price Adjustment", "Return Credit", "Contract Modification").

ID​

The credit memo number is automatically generated with format: CO # (e.g., "CO 15").

Description​

Enter a detailed description explaining the reason for the credit.

Credit Memo Amount​

Choose one of two methods to define the credit amount:

Flat Fee​

Use Flat Fee for a single credit amount:

  1. Click the Flat Fee button
  2. Click Edit next to the Total Amount
  3. Enter the credit amount
  4. Click Confirm

Line Items​

Use Line Items for itemized credits:

  1. Click the Line Items button
  2. Click the + icon to add items
  3. For each item, enter:
    • Name - Description of the credit item
    • Cost Code - Select from the cost code list
    • Unit Amount - Credit amount for this item
  4. Add more items as needed

The Totals row shows the sum of all line items.

Show Line Items to Owner​

Check Show Line Items to Owner if you want the itemized breakdown visible to the customer. Otherwise, they see only the total credit amount.

Status Information​

Amount Applied​

Shows the total amount from this credit memo that has been applied to invoices.

Amount Remaining​

Shows the remaining credit balance available to apply.

Applied To​

If the credit memo has been applied, shows:

  • Who applied it
  • Date applied
  • "Applied" badge
  • The invoice it was applied to

Send to Accounting​

Check Send to Accounting to sync the credit memo to QuickBooks when released. This option is disabled if already synced.

If QuickBooks is connected, you'll also see:

  • Remaining Balance - Credit remaining
  • Total Credit Memo Amount - Full credit value

Notes​

Add internal notes (visible after the credit memo is saved):

  1. Type your comment in the Comments section
  2. Click Post

Notes are timestamped with the author's name.

Attachments​

When creating a new credit memo, attach supporting documents:

  1. Click Add or drag files into the attachment area
  2. Supported format: PDF

Saving Options​

Save​

Click Save to save the credit memo without releasing it. Status remains "Not Released".

Save & Release​

Click Save & Release to:

  1. Save the credit memo
  2. Set status to "Released"
  3. Sync to QuickBooks if enabled
  4. Close the dialog

Apply to Invoice​

Click Apply to Invoice to:

  1. Save the credit memo
  2. Open the Apply Credit Memo dialog
  3. Select an invoice to apply the credit to

Applying a Credit Memo to an Invoice​

After clicking Apply to Invoice or from the credit memo edit form:

  1. The Apply Credit Memo dialog opens
  2. Select an invoice from the project
  3. Click Apply

When applied:

  • A payment record is created on the invoice with method "CreditMemo"
  • The invoice balance is reduced by the credit amount
  • The credit memo shows "Applied" status
  • The Amount Applied and Amount Remaining update

Editing a Credit Memo​

  1. Click on the credit memo ID/Title in the list
  2. Make your changes
  3. Click Save or Save & Release

Deleting a Credit Memo​

  1. Open the credit memo for editing
  2. Click Delete
  3. Confirm the deletion
warning

You cannot delete a credit memo that has been applied to an invoice. Remove the payment first.

Printing a Credit Memo​

  1. Open the credit memo for editing
  2. Click Print
  3. Use your browser's print dialog

Credit Memo Workflow​

  1. Create - Draft the credit memo with amount and description
  2. Save - Save as "Not Released" for review
  3. Release - Save & Release to finalize
  4. Apply - Apply to an invoice to reduce the balance

QuickBooks Integration​

If QuickBooks is connected:

  • Check Send to Accounting before releasing
  • Credit memos sync as QuickBooks Credit Memos
  • The sync status shows in the list view
  • Applied credits create corresponding payment records

Best Practices​

  • Use descriptive titles - Clearly indicate the purpose of the credit
  • Add detailed descriptions - Document why the credit was issued
  • Use line items for itemized credits - Provides clear breakdown for accounting
  • Review before releasing - Released credits may sync to QuickBooks
  • Apply to invoices promptly - Keep invoice balances accurate