A credit memo is a document that records credit owed to a customer. It can reduce what they owe, correct a billing mistake, or document a goodwill credit.
When to use a credit memo#
Use a credit memo when a customer overpays, receives a refund, gets a service credit, or needs an invoice adjusted after it was sent.
Why not just edit the invoice?#
Sometimes editing an invoice hides the story. A credit memo keeps the original invoice and the adjustment separate, which makes your records easier to understand later.
What a credit memo should include#
- Customer name and email.
- Credit memo date.
- Reason for the credit.
- Line items that explain the credit amount.
- Total credit.
How Reinvoice helps#
Reinvoice gives credit memos their own workflow. You can save a draft, issue the credit, download a PDF, and keep the credit tied to the right customer.
The best credit memo is boring in the right way: clear reason, clear amount, clear customer.