Overview
If you need to issue credit for unused services or items, you can use Credit Memos. Credit Memos allow you to efficiently apply credits at the client or project level for unused services, products, or other adjustments.
Additionally, you can use Credit Memos to issue a refund client credit to invoices or apply credits to specific items or services within a client’s project.
Things to note
Credit Memos created at the client level are not accessible within a client’s project.
Similarly, Credit Memos created at the project level are not accessible at the client level.
Clients
Creating a Credit Memo
Instructions for Web
Hover over the panel on the left and click Clients & Projects.
Click on the client that you want to credit.
On the right, under Billing History, click the Open Credits tab.
Click + Credit Memo.
Under Item, select an existing item or create a new one. Optionally, you can add a description of the item or service.
Enter the quantity.
Enter the rate of the credit amount.
If the credit is taxable, check the Taxable check box.
If checked, add a tax rate in the Tax dropdown on the right.
Review your credit memo, then click Send to... in the upper right.
On the right, verify your client's email address, subject line, and the email message.
If you do not want to send an email to your client, click Mark as sent (no email) on the lower right.
Click Send.
After creating the Credit Memo, the Client Credit tile will display the client's unused credit amount that has not yet been applied to an invoice.
Instructions for Mobile
Tap the three-lined menu icon in the top left.
Tap Clients & Projects.
Select the client you want to credit.
Scroll down and, under Billing History, tap on the Open Credits tab.
Tap + Credit Memo.
In the Items tile, tap Edit or Add Items.
Tap + Add Item.
In the Name dropdown, select an existing item/service or create a new one by entering the name and tapping + Create.
Enter the rate of the credit amount.
If the credit is taxable, check the Taxable check box.
Select the category that best fits your credit (default is Business Income).
Tap Create.
Review your Credit Memo information and tap Continue.
Scroll to the bottom and tap Send to...
Enter the email you want to send the Credit Memo to.
Review the subject line and email message.
Tap Send.
After creating the Credit Memo, the Client Credit title will display the client's unused credit amount that has not yet been applied to an invoice.
Applying Credit to an existing Invoice
After creating a Credit Memo, it will appear in your Billing History under the Open Credits tab. You can apply the Credit Memo to an existing invoice by following these steps:
Instructions for Web
On the right of the Credit Memo, click the three-dot menu icon.
Click Apply to Invoice.
Enter the amount of credit to apply in the Amount to Apply field underneath the applicable Invoice.
Click Save.
In Billing History, under the Billed tab, you will see the credit applied to the selected invoice. If no payment is associated with the credited invoice, its status will be set to Partial Payment.
Instructions for Mobile
Tap the Credit Memo that you want to apply to an invoice.
Tap Apply to Invoice.
In the invoice that you want to apply the Credit Memo towards, enter the amount in the Amount to Apply field.
On the bottom, tap Apply.
In Billing History, under the Billed tab, you will see the credit applied to the selected invoice. If no payment is associated with the credited invoice, its status will be set to Partial.
Applying Credit to a new Invoice
After creating a Credit Memo, it will appear in your Billing History under the Open Credits tab. You can apply the Credit Memo when creating a new invoice by following these steps:
Instructions for Web
Select the applicable client from the Client list in Clients & Projects.
Click + Invoice under Billing History.
After entering the details of the invoice, and before sending, enter the credit amount you want to apply into the Credit Applied field.
Note: The amount of available credit for the selected client will be displayed underneath the Credit Applied field.
Instructions for Mobile
Select the applicable client from the Client list in Clients & Projects.
Tap + Invoice under Billing History.
After entering the details of the invoice, and before sending, enter the credit amount you want to apply into the Credit Applied field.
Note: The amount of available credit for the selected client will be displayed to the right of the Credit Applied field.
Refunding Client Credits
If you need to issue a refund for a client credit—whether due to an overpayment for services or returns—you must first create a Credit Memo for the refunded amount. To issue a refund after creating a Credit Memo, follow these steps:
Instructions for Web
On the right of the Credit Memo, click the three-dot menu icon.
Hover over Refund and, if you already have the refund recorded as a transaction, click Link to Transaction. If you want to create a new transaction to record your refund, click Pending Refund.
If you selected Link to Transaction, choose one of your transactions from the list to link your refund to. Once you have selected a transaction, click Next.
If you selected Pending Refund, to the right of the Refund date, enter the refunded amount. Click Save.
Instructions for Mobile
Tap on the Credit Memo created for the refund.
Select Refund Credit.
In the Refund Amount section, enter the amount that you want to refund.
Tap Save.
After you have created your refund, a transaction will be added to your business account to reflect the refund.
Note: Under Billed & Credited, you will see all invoices and credit memos at both the client and project levels.
Projects
Creating a Credit Memo in a Project
If you need to credit items or services for a specific project you are working on for a client, follow the steps below.
Instructions for Web
Hover over the panel on the left and click on Clients & Projects.
Click on the Client with the project you want to apply credit on.
Under Projects, select the desired project.
On the right, under Billing History, click the Open Credits tab.
Click + Credit Memo.
On the upper left, click on the Clients & Projects dropdown and select the desired project.
Under Item, select an existing item or create a new item. Optionally, you can add a description of the item or service.
Enter a quantity.
For example: if you are applying two $5 credits to a client, the quantity amount would be 2.
Enter the rate of the credit amount.
If the credit is taxable, click the Taxable check box.
If you checked the Taxable check box, you will need to create a new tax rate in the Tax dropdown on the right.
Review your credit memo and click Send to... in the upper right.
On the right, verify your client's email address, the subject of the email, and the email message. Make any necessary changes.
If you do not want to send an email to your client click Mark as sent (no email) in the lower right area.
Click Send.
After you created your Credit Memo, you will see it within your project under the Open Credits tab in your Billing History.
Instructions for Mobile
Tap on the three-lined menu icon in the upper left.
Tap on Clients & Projects.
Tap on the Client with the project you want to apply credit on.
Scroll down to Projects and select the desired project.
Scroll down to Billing History and tap on the Open Credits tab.
Tap + Credit Memo.
In the Items tile, tap Edit or Add Items.
Tap + Add Item.
In the Name dropdown, select an existing item or service, or create a new one by entering the name of the item and tapping + Create. Optionally, you can add a description of the item or service.
Enter the rate of the credit amount.
If the credit is taxable, check the Taxable check box.
Select the category that best fits your credit. The category is defaulted to Business Income.
Tap Create.
Review your Credit Memo information and tap Continue.
Scroll to the bottom and tap Send to...
Enter the email you want to send the credit memo invoice.
Review the subject line and email message.
Tap Send.
After creating your Credit Memo, you will see the credit memo under the Open Credits tab in your Billing History.
To apply the credit memo to an invoice within your project
Instructions for Web
On the right of the credit memo, click on the three-dot menu icon.
Click Apply to Invoice.
Select the desired invoice you want to apply the Credit Memo towards and enter the amount in the Amount to Apply field.
Click Save.
In Billing History, under the Billed tab, you will see the credit applied to the selected invoice. If no payment is associated with the credited invoice, its status will be set to Partial Payment.
Instructions for Mobile
Tap on the three-lined menu icon on the top left.
Tap Clients & Projects.
Tap on the Client with the project you want to apply credit on.
Under Projects, select the desired project.
Under Billing History, in the Open Credits tab, click on the Credit Memo you want to apply to an invoice.
Tap Apply to Invoice.
In the applicable invoice you want to apply the Credit Memo towards, enter the amount in the Amount to Apply field.
On the bottom, tap Apply.
In Billing History, under the Billed tab, you will see the credit applied to the selected invoice. If no payment is associated with the credited invoice, its status will be set to Partial.
Refunding Client Credits within a Project
If you need to issue a refund for a client credit within a project—whether due to an overpayment for services or returns—you must first create a Credit Memo for the refunded amount. After creating the Credit Memo, follow these steps to issue a refund:
Instructions for Web
In your project, under Billing History, click the Open Credits tab.
On the right of the Credit Memo you want to refund, click the three-dot menu icon.
Hover over Refund and, if you already have the refund recorded as a transaction, click Link to Transaction. If you want to create a new transaction to record your refund, click Pending Refund.
If you selected Link to Transaction, choose one of your transactions from the list presented to link your refund to. Once you have selected a transaction, click Next.
If you selected Pending Refund, to the right of the Refund date, enter the refunded amount. Click Save
Instructions for Mobile
Tap the three-lined menu icon in the upper left.
Tap Clients & Projects.
Tap on the Credit Memo created for the refund.
Tap Refund Credit.
In the Refund Amount section, enter the amount you want to refund.
Tap Save.
After you have created your refund, a transaction will be added to your business account to reflect the refund.
Note: Within a project, under Billed & Credited, only invoices and credits for that specific project will be visible.