A credit memo is a formal record of money owed back to a customer. It reduces what the customer owes — either by being applied to an open invoice or by being converted to a cash refund. Credit Memos in CRO Billing gives you a complete view of all credits issued and their current status.

📸 Screenshot suggestion: The Credits by Account tab showing the customer list with columns for total credits, open balance, and number of credit memos.

Open Balance Credit Memos Shows all credit memos that still have an unused balance — credits that have not been fully applied to invoices or converted to refunds. Review this list regularly so credits do not sit unused on customer accounts longer than necessary.

Credits by Account Shows credit memo activity organized by customer. Click any customer to see their full credit memo history, including memos that have been fully used and those that are still open.

Credit memos in CRO Billing have an approval flag that controls whether they can be used.

An approved credit memo is available to apply to invoices during payment processing. When you are on the Apply Payment screen, approved credit memos with an open balance will appear in a dedicated section where you can select them.

An unapproved credit memo is visible in the system but cannot be applied until it is approved. This is useful when a credit needs review before it is made available.

📸 Screenshot suggestion: The Credit Memo detail page showing the Memo Details section with the Approved checkbox, CM Type, Issue Date, Amount, and Balance fields visible.

When you create a new credit memo, you will fill in the key details in the Memo Details section:

Below the details, you can add line items to document what the credit covers. Use From item list to select from existing items in your system, or Free-form entry to type in a description and amount directly.

The credit memo amount is calculated from your line items — it is not a field you type into directly.

📸 Screenshot suggestion: The Create Credit Memo modal with the Memo Details section expanded, line items table visible, and the Add line item split button showing the From item list / Free-form entry dropdown.

A customer returned a product and you need to credit their account. Go to Credit Memos and create a new credit memo. Select the return type, add a line item for the returned product, and approve the memo. The credit will then be available to apply the next time that customer makes a payment.

You want to apply a credit to reduce a customer's invoice balance. Credits are applied during payment processing. Go to Receivables, open a payment for the customer, and use Apply to Items. In the Credit Memos section at the top of the apply screen, you will see any approved credits with an open balance available to select.

A customer wants a check for their credit balance instead of keeping it on account. Open the credit memo detail page. If the memo is approved and has an open balance, a notice will appear offering the option to Issue Refund. This converts the credit to a cash payment to the customer.

You created a credit memo by mistake. Open the credit memo, enter edit mode, and select Void. The memo will be zeroed out but will remain visible in the record for audit purposes. Use void rather than delete to preserve the history.