Credit Notes and Refunds

Credit notes, also known as credit memos, are documents issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an earlier invoice.

When a credit note is issued, the customer receives an email notification with the Invoice # and the amount credited.

Credit Notes are generally used in the following scenarios:

• Service Cancellation or Refund: The customer requests a refund because the service was defective, unavailable, did not meet expectations, or failed to deliver promised functionality.

• Overbilling: There was an error in the original invoice, such as overbilling or incorrect pricing.

• Discounts or Rebates: The seller wants to offer a discount or rebate after the initial invoice was issued.

• Promotional Credits: Credits given for promotional purposes or customer satisfaction.

When creating a credit note, you will fill in the following fields:

• Effective Date (required): Between the date the invoice was created and the current date

• Internal Reason (required): Capture the reason for creating this credit note

• Memo (optional): A text note visible to your customer on the invoice

• Internal Note (optional): A text note for internal purposes that is NOT visible to the customer

Once created, you can find the Credit Note displayed on the invoice:

• Credit Notes are best used for Invoices that are in PENDING and OVERDUE

• Refunds are best used for Invoices that are PAID

How To: Issue a Credit Note for an Invoice

How To: Issue a Refund to a Customer