Credit Memos

a credit memo is a contraction of the term "credit memorandum," which is a document issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice the credit memo usually includes details of exactly why the amount stated on the memo has been issued, which can be used later to aggregate information about credit memos to determine why the seller is issuing them a credit memo may be issued because the buyer returned goods to the seller, or there is a pricing dispute, or a marketing allowance, or other reasons under which the buyer will not pay the seller the full amount of the invoice the seller records the credit memo as a reduction of its accounts paybale balance, while the buyer records it as a reduction in its accounts payable balance credit memos reduceinvoice and account balances by applying one or more credit memos to invoices with positive balances, you can reduce the invoicebalances in the same way that applying a payment to an invoice permissions required please enable the following permissions in the user role credit memos example use case customer smart revenue is on annual billing it has a 12 month subscription starting 01/01/2023, and ending 12/31/2023, with a $100 monthly charge the customer was already invoiced and paid $1200 on 05/01/2023, smart revenue wants to reduce 50% of the user licenses due to operational challenge the company agrees to the change, and creates a change order that reduces $50 per month starting 05/01/2023 when the order is activated, nue billing accelerator creates a credit memo of $350 ($50 7) for the reduced amounts the credit memo can be transferred to the connected payment system (e g , collect payments via stripe invoicing docid nbzb70twgpswffpy5hz ) or an erp system as additional credit balance of the customer that can be used towards future payments a credit memo is essentially the same as a negative invoice a credit memo also contains one or more credit memo items generated from negative order products if credit memo feature is not enabled for the organization, a negative invoice willl be generated by the billing engine instead credit memos can be generated in one of the following scenarios from negative orders or order products from refunds for example, collect payments via stripe invoicing docid nbzb70twgpswffpy5hz enable credit memo to enable credit memo feature, users can follow the steps below login to nue app https //app nue io navigate to settings → invoices enable credit memo there are 2 different configuration options option 1 create a credit memo instead of a negative invoice when the total billed amount in a billing cycle is negative if enabled, a credit memo will be created instead of a negative invoice, when the total billed amount in a billing cycle for a customer is negative option 2 create a credit memo for all items with negative amounts instead of negative invoice items if enabled, negative items in a billing period for the same customer will be created as a credit memo, instead of negative invoice items for example, if there are the following 3 order products in an order billable in a billing period order product product name amount op 0000001 product a $1000 op 0000002 product b $500 op 0000003 product c $300 if setting “create a credit memo instead of a negative invoice when the total billed amount in a billing cycle is negative” is enabled, a credit memo will not be created for this order an invoice with 3 items, where 2 are negative items will be created instead if setting “create a credit memo for all items with negative amounts instead of negative invoice items” is enabled, a credit memo with $800 will be created for op 0000002 and op 0000003 with 2 credit memo items, an an invoice with $1000 will be created with an invoice item $1000 manage credit memos to manage credit memos, users can follow the steps below login to nue app https //app nue io navigate to settings → credit memo on this page, users have the ability to search, filter, and sort the list of credit memos they can perform various actions on each credit memo, such as activating, canceling, or deleting them, in the same way as billing accelerator overview docid\ rb 2ga 7mzxybhrbb4rfo users can also view, activate and cancel credit memos in the lifecycle manager for a specific customer account first, admin users need to enable credit memos tab in the lifecycle manager login to nue app https //app nue io navigate to settings → customer lifecycle tabs enable credit memos after credit memos tab is enabled in the lifecycle manager, users can see the credit memos in the lifecycle manager for a specific customer login to salesforce, and navigate to nue on salesforce navigate to accounts search and open an account click manage customer lifecycle button naviget to credit memos tab on this tab, users have the ability to search, filter, and sort the list of credit memos they can perform various actions on each credit memo, such as activate, cancel or delete