# Manage credit memos

A credit memo is a record that describes an amount owed to a customer.
Similar to an invoice, it includes items, taxes, and shipping, but its total is subtracted from the invoice amount.
A common use case for a credit memo is to provide a customer with store credit, rather than a refund, if the customer overpays or returns a product.

Credit memos can be created and applied to unpaid or partially paid invoices, or created directly from specific invoices.

You can allocate all or part of a credit memo amount to an invoice.
For example, if a customer has a credit memo of $50 and an unpaid invoice of $100, and $25 of the credit memo is applied to the invoice, the invoice amount is reduced to $75.
The remaining $25 of the credit memo can be applied to another invoice or kept as credit for future use.

## Allocate a credit memo to an invoice

Use this process to allocate an amount of a credit memo to an unpaid invoice.

1. If you have not already done so, [Create a credit memo](#create-a-credit-memo). 
Credit memos must be created before they can be allocated to an invoice.
2. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
3. In the left navigation bar, press .
4. Press **Billing**, **Unpaid invoices**, then select an invoice.
5. In the right of the page, press **Apply credit memo**.
6. Select a credit memo and enter the amount, then press **Apply credit memo**.


## Create a credit memo

Use this process to create a credit memo.
A common use case for a credit memo is to provide a customer with store credit, rather than a refund, if the customer overpays or returns a product.

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press , then press **Customers**.
3. In the **Name** column, press a customer's name.
4. In the right of the page, press , then press **Create credit memo**.
5. In the **Credit memo information** section, complete the following:
  1. In the **Description** field, enter a description of the credit memo.
  2. In the **Reason** field, enter the reason for the credit memo.
6. Optionally, create a credit memo from a specific invoice:
  1. In the **Invoice information** section, select the **Create credit memo from a specific invoice** checkbox.
  2. In the **Invoice** field, select an invoice.
  3. Optionally, to view the invoice, press **View invoice details**.
7. In the **Credit memo items** section, complete the following:
  1. In the **Currency** field, select a currency.
  2. In the **Shipping amount** field, enter the shipping amount.
8. In the **Credit memo items** section, enter the following:
  - In the **Unit price** field, enter the unit price of the credit memo item.
  - In the **Quantity** field, enter the quantity of units.
  - In the **Tax amount** field, enter the total amount of tax.
  - In the **Tax description** field, enter a description of the tax.
  - In the **Description** field, enter a general description for the credit memo item.
  - In the **Invoice item** field, select an invoice item.
  - In the **Product** field, select a product.
  - In the **Plan** field, select a plan. 
Optionally, to add more items to the credit memo, press **Add another credit memo item**.
9. Press **Create credit memo**.


## Edit a credit memo

Use this process to manually add, update, or delete a line item or other information in a credit memo.

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press .
3. Press **Billing**, **Credit memos**, then select a credit memo.
4. Select from the following:
Edit an item  1. On the right of the item, press .
  2. Update the item, then press **Update item**.
Delete an itemOn the right of the item, press .
Add a new item  1. Under **Description**, at the end of the items list, press **Add item +**.
  2. Enter the item details, then press **Add item**.


## Filter credit memos

Use this process to filter credit memos in a data table segment based on specific criteria.
For example, you can filter credit memos by customer, created time, total amount, and more.

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press , then press **Billing**.
3. Press **Credit memos**.
4. At the top of the table, press .
5. Select a filter, then press **Apply**.
6. To add more filters, press **Add filter**.


## View credit memos

Use this process to view credit memo details.
To filter credit memos, see [Filter credit memos](/docs/data-tables/manage-credit-memos#filter-credit-memos).

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press , then press **Billing**.
3. Press **Credit memos**.
4. To view the details of a credit memo, select a credit memo.


## Download a credit memo

Use this process to download a credit memo in PDF format.

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press , then press **Billing**.
3. Press **Credit memos**.
4. Select a credit memo.
5. At the bottom of the credit memo, press **Download credit memo**.


## Void a credit memo

Use this process to void a credit memo.

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press .
3. Press **Billing**, **Credit memos**, then select an issued credit memo.
4. At the bottom left of the credit memo, press **Void**.


## Refund a credit memo

Use this process to refund a credit memo.

A credit memo can be refunded only if it is related to an order or invoice.
When the credit memo is refunded, the unallocated amount is used to create a refund transaction from the related order or invoice transaction.
If the invoice has multiple transactions, those transactions are refunded.
Only credit memos with an amount that does not exceed the last invoice transaction total can be refunded.

1. [Log in](https://app-sandbox.rebilly.com/login) to Rebilly.
2. In the left navigation bar, press .
3. Press **Billing**, **Credit memos**, then select an issued credit memo.
4. At the bottom left of the credit memo, press **Refund**.