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Credit memos

Find information about how to handle credit memos

A credit memo is a document issued by a supplier when purchased products or requested services are not delivered, performed or are returned by the customer. It indicates a credit is owed to the customer for the value of the returned or undelivered goods.

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1. How to determine if you should request a credit memo or a refund check from your supplier

When to request a credit memo from the supplier

  • If the credit is a low dollar value and you have continuing business with the supplier

When to request a refund check from the supplier 

  • Regardless of the value of the credit memo, if there will be no future business with the supplier, you must request a refund check from the supplier

Note: When a credit memo is processed, the credit amount is reduced from future payments that are made to the supplier from invoices that are processed for payment.  

2. What to do after requesting a credit memo

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