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, provide client credit for invoices, or apply credits to specific items or services within a project.
Things to note
Credit Memos created at the client level are not accessible within a client’s project.
Likewise, Credit Memos created at the project level are not accessible at the client level.
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.
If you want to create a credit for a project, make sure to select the correct project before going to step 3.
On the right, under Sales History, click the Credits tab.
Click + Credit Memo.
Under Item, select an existing item or create a new one.
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 the Send to... button in the upper 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 Menu (three-line icon).
Tap Clients & Projects.
Select the client you want to credit.
If you want to create a credit for a project, make sure to select the correct project before going to step 4.
Scroll down and, under Sales History, tap on the 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 create a new one.
Enter the rate of the credit amount.
If the credit is taxable, check the Taxable check box.
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 Sales History under the Credits tab. You can apply the Credit Memo to an existing invoice by following these steps:
Instructions for Web
Go to Sales History > Credits.
On the right of the Credit Memo, click the three-dot menu icon.
At the top right, click Apply to Credit.
You can choose to apply the credit either to an invoice or as a refund.
Enter the amount of credit to apply.
Click Save.
In Sales 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 credit amount.
On the bottom, tap Apply.
In Sales 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 Sales History under the Open Credits tab. You can apply the Credit Memo when creating a new invoice by following these steps:
Instructions for Web
Hover over the panel on the left and click Clients & Projects.
Click on the client that you want to credit.
Click + Invoice under Sales History.
After entering the details of the invoice and before sending, enter the credit amount you want to apply.
Note: The amount of available credit for the selected client will be displayed at the bottom of the Invoice total.
Instructions for Mobile
Tap the Menu (three-line icon).
Tap Clients & Projects and select the applicable client
Scroll down and tap + Invoice under Sales History.
After entering the details of the invoice and before sending, enter the credit amount you want to apply.
Note: The amount of available credit for the selected client will be displayed at the bottom of the Invoice total.
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 icon.
Hover over Refund and select one of the two options
Link to Transaction: Choose one of your transactions from the list to link your refund to. Once you have selected a transaction, click Next.
Create Transaction: 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.
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.