Settle an invoice with credit memos

If a customer already holds credit memos, you can use them to reduce or clear an invoice instead of taking a new payment.

Before you start

• You need the ChargeOn permission for applying credit memos (part of the ChargeOn Credit Memo Manager permission set).
• The customer needs at least one credit memo with a balance still available. A Fully Applied, Voided, Written Off or Expired credit memo has nothing left to use.
• You can apply up to 20 credit memos to one invoice in a single action.

Steps

1. Open the invoice.
2. Click Settle With Credit Memos.
3. Select the credit memo, or memos, to use. Available credit is listed soonest-to-expire first — see the order credit is applied in — but you can pick any of them.
4. Enter how much of each to apply. You cannot apply more than a credit memo's own remaining balance, or more in total than the invoice's outstanding amount.
5. Click Apply.

What you should see

The invoice's Credit Memo Applied amount increases and its outstanding balance falls. If the credit fully covers what was owing, the invoice moves to Paid; otherwise it moves to Partially Paid. Each credit memo used shows its new remaining balance.

If it does not work

Symptom	Likely cause	What to do
No credit memos appear to choose from	The customer has none with a remaining balance, or they belong to a different Account/Contact	Check the customer's credit memos directly for status and Remaining Amount
ChargeOn rejects the total as too high	The amounts entered together exceed the invoice's outstanding balance	Reduce one or more of the amounts
The invoice is still Partially Paid after applying credit that should have covered it	The amount applied did not fully cover the outstanding balance, or a late fee was added to the invoice after you started	Re-check the invoice's current outstanding amount, including any late fee, before applying