Credit Memos: Reasons, Rules and Sync Reference
Look-up facts for Credit Memos: reasons, what copies from an order, rules for applying credit, and what syncs to your accounting software.
Overview:
Reasons
| Reason | Use it for |
|---|---|
| Return / buyback | Returned products or unsold stock |
| Damaged product | Product or packaging damage |
| Missing / incorrect items | Short shipment, wrong product or picking error |
| Product quality issue | A quality complaint about the product |
| Pricing / billing adjustment | Incorrect price, missed discount, shipping or fee correction |
| Goodwill | A discretionary customer-service credit |
| Other | Anything else. Reason details are required. |
Your customer sees the reason and reason details on the memo, PDF and email.
Creating Credit Memos from an Order
| What | Copies over? |
|---|---|
| Products | Yes, at the price charged after discounts |
| Shipping | Yes, as a credit line using your shipping credit item |
| Manual fees | Yes |
| Sales tax | No (shown in the "Not included from Order #…" box) |
| Convenience fees | No (shown in the "Not included from Order #…" box) |
| Order | Can you create a memo from it? |
|---|---|
| Submitted RoasterTools order, paid or unpaid | Yes |
| Canceled or imported order | No |
| Sales tax still calculating or failed | Not until tax finishes |
- "Based on Order #…" is added to the External to Customer note. You can edit it.
- You can create more than one memo from the same order.
- Inactive customers and products can be used. Check Include inactive when you search.
- Create Credit Memo on the customer page only shows for active customers. For an inactive customer, start from Sales > Credit Memos > + New Credit Memo.
Applying credit
- The amount must be more than $0.00 and no more than the order's balance.
- Each memo can be applied to the same order once. To change the amount, unapply it and apply again.
- You can use more than one memo on the same order.
- If a balance is left after you apply credit, the payment panel reopens so you can collect the rest.
- Credit has no convenience fee. If the rest is paid by card, the fee is based only on what's left.
Sales tax
Credit Memos don't calculate sales tax yet. Memos sync to accounting with a $0 tax total.
Accounting
| Accounting software | Status in the beta |
|---|---|
| QuickBooks Online | Supported. Turn off Automatically apply credits in QuickBooks Online. |
| QuickBooks Desktop | Supported. Choose an Accounts Receivable account for Credit Memos first. |
| Xero | Supported. Xero sets the application date (see below). |
| Change in RoasterTools | Updates accounting? |
|---|---|
| Create a memo | Yes, when you click Sync |
| Apply credit to an order | Yes, when you click Sync on the application |
| Edit a memo after it synced (including issue date or notes) | No, change it there separately |
| Cancel a memo | No, void it there |
| Unapply credit (QuickBooks Online) | Yes, when you click Sync on the Unapply sync status |
| Unapply credit (QuickBooks Desktop or Xero) | No. The status shows Manual. Remove it there yourself. |
- Nothing syncs automatically. Memos and applications sync when you click Sync or Retry Sync.
- Credit memos already in your accounting software aren't brought into RoasterTools.
- Xero application dates: Xero dates each application with the Credit Memo date or the invoice date, whichever is later. When that differs from the day you applied the credit, the Credit Memo page shows the date in Xero.
Credit Memo numbers and notes
- Memos are numbered with an R-CM prefix starting at 1001 (for example, R-CM1008). You can change the prefix and starting number under Settings > Sales > Credit Memo Numbers.
- By default, your accounting software gets the RoasterTools number. You can let it assign its own number instead under Accounting settings > Credit Memo details.
- The External to Customer note is sent to QuickBooks Online and Xero, not QuickBooks Desktop. Notes are sent only when the memo is first synced.
Emails and documents
| Default | Who turns it on | |
|---|---|---|
| Email Credit Memo (manual, with PDF) | — | You, each time you send |
| "Credit memo created" (automatic, no PDF) | Off per customer, on per contact | You, with Confirmation Emails for Manual Credit Memos on the customer |
| "Credit Memo applied" (to your team) | Off | Each team member, in Settings > Notifications |
Customers aren't emailed when you edit a memo, apply or unapply credit, or cancel a memo. The PDF shows items, reason, the note to your customer, remaining credit and credit history. Internal notes are never included.
Canceled memos
A canceled memo can't be applied, edited or seen by your customer. It stays on the Canceled tab with its history.
Learn More: New to Credit Memos? Start with Credit Memos: Overview and Getting Started.