# 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 screen, 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 screen, 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, to 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 **Unity 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 view credit memos 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.


## 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**.