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Issue a credit memo

Issuing a credit memo records that you owe a customer value — without moving any money — so it can be applied against what they owe later.

Before you start

  • You need the ChargeOn permission for issuing credit memos (part of the ChargeOn Credit Memo Manager permission set).
  • Credit memos must be turned on for the invoice's payment object. Ask your admin if the Issue Credit Memo action does not appear.
  • You issue a credit memo from the invoice it relates to. If the credit is not about a specific invoice — a goodwill credit with nothing to point to, or money the customer paid you in advance — see advance payments instead.
  • Writing off an invoice you will never collect is a separate action — see close out an invoice.

Steps

  1. Open the invoice the credit relates to.
  2. Click Issue Credit Memo.
  3. Choose a Reason — Returns for a customer return or goodwill credit, or Invoice Error for a billing correction.
  4. If neither reason fits, ask your administrator. Only these two reasons ship with ChargeOn and there is no Other option here; an administrator can add further reasons as Credit Memo Reason custom metadata records, and they appear in this list.
  5. Enter the Amount. ChargeOn will not let you issue more than is actually available to credit back on this invoice, and rejects the amount if you try.
  6. Add line items if you want the credit itemised, rather than a single lump amount.
  7. Click Save.

What you should see

The credit memo record opens with status Open and the amount you entered. If you chose Invoice Error, ChargeOn applies it to this same invoice immediately, so it may already show as Partially Applied or Fully Applied.

If it does not work

Symptom Likely cause What to do
Issue Credit Memo does not appear on the invoice Credit memos are not turned on for this payment object, or you lack the permission Ask your admin to check the Credit Memo mapping and your permission set
ChargeOn rejects the amount as too high The amount exceeds what is actually available to credit back on this invoice Enter a lower amount, or check whether a refund is what you actually need
You cannot select Advance Payment or Bad Debt as a reason here Both are deliberately excluded from invoice-tied issuing — Advance Payment has its own flow, and Bad Debt only comes from closing out an invoice Use advance payments or close out an invoice instead