Credit Memos: Overview and Getting Started

When an invoice has already been created, fixing a short shipment, damaged bag, or pricing error can get messy. Credit Memos let you document the adjustment separately, while keeping the original invoice intact. Your customer can then use the credit toward a future order or invoice.

Watch how it works

• Creating a Credit Memo (4.5 min)
• Applying credit and syncing to accounting (5 min)
• What your customers see in the Wholesale Portal (1.5 min). Share this one with your wholesale customers.

Why use a Credit Memo instead of a refund or an edit

• The original invoice doesn't change. No wondering why an invoice looks different than it did before, and no mistakes when a payment is made on the original balance after you've updated it to a new balance.
• The original invoice stays as your customer paid it. No refunds or surprise changes to a paid invoice.
• Every adjustment has its own record. Each memo has a number, a reason and a full history of where the credit was used.
• Your books stay in sync. Credit Memos, and the credit you apply, sync to your accounting software.
• Your customers see the same balance you do. They can view their credits in the Wholesale Portal and use them when they pay.

What you can do with Credit Memos

• Create a credit from an order or from scratch. See How to Create a Credit Memo.
• Apply all or part of a credit to an order. See How to Apply Credit to an Order.
• Sync memos and applied credit to QuickBooks Online, QuickBooks Desktop or Xero. See How to Sync a Credit Memo to Accounting.
• Unapply credit, or cancel a memo you no longer need. See How to Remove Applied Credit and How to Cancel a Credit Memo.
• Email, download or print a memo for your customer. See How to Email, Download or Print a Credit Memo.
• Let customers use credit in the Wholesale Portal. See Wholesale Portal: How to Use Your Credits (share this one with your wholesale customers).

Getting set up

When we turn on Credit Memos for your account, we set up a shipping credit item. It's called Credit - Shipping unless you'd like a different name or want to use a credit item you already have. When you create a memo from an order that charged shipping, the shipping cost copies over as a line with that product, so you can credit some or all of it by editing that line.

What a Credit Memo doesn't do

A Credit Memo is a financial credit only.

• It doesn't restock inventory or change production, fulfillment or demand.
• It doesn't refund money to a credit card or bank account.

Common questions

Q: Do Credit Memos include sales tax?

A: Not yet. When you create a memo from a taxed order, everything copies over except the tax, and the "Not included" box shows the tax amount that was left out. If you need to credit tax, handle it separately for now. Tax on Credit Memos is coming soon.

Q: Can I sync Credit Memos to my accounting software?

A: Yes. Credit Memos and the credit you apply to orders sync to QuickBooks Online, QuickBooks Desktop and Xero. You sync them from the memo by clicking Sync, the same way you sync orders. See How to Sync a Credit Memo to Accounting.

Q: Will credit apply to orders automatically?

A: When a prepay customer places an order in the Wholesale Portal, credits will automatically apply to that order. Everywhere else, you or your customer can apply credit from the payment panel. See How Credit Works with Orders, Payments and Accounting.

Q: Do convenience fees copy over when I create a memo from an order?

A: No. The "Not included" box shows them, so you can add them as a credit line if you need to.

Q: Can I undo a canceled memo?

A: No. Create a new one instead. Customers also aren't notified when a memo is canceled.

Q: What's coming next?

A: Sales tax on Credit Memos, and a single Transactions view that shows payments and credit applications together.

Run into something unexpected? Let us know at support@roastertools.com. Feedback is always appreciated.

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