The Invoice Overpayment Credit Memo Limit field on the Business Group record is used to determine when the system will automatically create a credit memo. When an Invoice overpayment is less than or equal to the Invoice Overpayment Credit Memo Limit, a Credit Memo will automatically be created for the customer. When the Invoice overpayment exceeds the Invoice Overpayment Credit Memo Limit, you can decide whether to create a refund or a Credit Memo. This can be accomplished on the Invoice record once the transaction is complete. If the amount paid exceeds the Credit Memo and Write Off thresholds, then staff users can manually create a Credit Memo and Write Off.

Credit Memos can only be used as a form of payment for Invoices. Credit Memos cannot be used to pay a Sales Order. When the customer is accidentally overcharged, a credit memo can be issued. Credit memos cannot be created for returns. 

The Invoice Write-off Limit field on the Business Group record is used to determine when the system will issue a Write Off or if the underpayment amount will be reflected in the Balance Due of the most recent Invoice. If the Invoice Overpayment Credit Memo and Invoice Write-Off Limits are undefined on the Business Group, then staff users must manually create credit memos and write-offs. The Credit Memo and Invoice Write-Off Accounts must be populated in order to both automate and manually create credit memos and/or write-offs.

Configure Automated Credit Memos and Write-offs:

To configure automated credit memos and write-offs:

  1. Navigate to the Business Groups tab click on the associated Business Group.

  2. Click Edit. The Edit Business Group modal will open.

  3. Identify the appropriate Credit Memo Account and/or the Invoice Write-Off Account using the related lookups.

  4. Type the threshold amounts into the Invoice Overpayment Credit Memo Limit and/or the Invoice Write-Off Limit fields.

  5. Click Save

If the overpayment of an Invoice is less than or equal to the value provided in the Invoice Overpayment Credit Memo Limit field, the system will apply a Credit Memo against the customer account. If the underpayment of an Invoice is less than or equal to the value provided in the Invoice Write-Off Limit field the system will apply a Write Off against the customer account.