Create and apply a customer credit memo

Create a credit memo when you need to reduce a wholesale customer's balance for an allowance, pricing adjustment, goodwill credit, or approved write-off. You can apply the credit to one or more open orders for the same customer.

Credit memos are financial records. They do not return any product to inventory or create a compliance-system transaction.

Before you start

• Confirm the customer, amount, reason, and supporting reference for the credit.
• Complete any physical product return separately through the appropriate inventory and compliance workflow.
• For a bad-debt write-off, follow your organization's approval and accounting policy.

Create a credit memo

1. Go to Outbound > Payments.
2. Select Credit Memos.
3. Select New Credit Memo.
4. Select the customer receiving the credit.
5. Enter the credit amount and issue date.
6. Select or enter the reason for the credit.
7. Enter a reference or note that explains the adjustment.
8. If the credit is associated with an order, select the source order when that option is available.
9. Review the details and issue the credit memo.

Apply the credit memo

1. From Credit Memos, open the issued credit memo.
2. Select Apply.
3. Review the customer's open orders.
4. Enter the amount to apply to each order. Partial application is allowed.
5. Confirm that the total does not exceed the credit memo's remaining amount or any order's open balance.
6. Save the applications.

The unused amount remains available on the credit memo for future orders.

Void a credit memo

Void a credit memo when the financial credit itself should be reversed. Confirm the warning before continuing. A void preserves the audit history and cannot be undone; create a replacement credit memo if needed.

QuickBooks Online behavior

When credit-memo sync is enabled, Flourish sends the credit memo to QBO through the AR sync process. Normal credit memos and bad-debt write-offs may use different accounting mappings.