Credit memo

A document reducing what a customer owes without returning cash, such as a discount after the fact or a goodwill adjustment.

In Solo Superstars

Solo Superstars handles this as a refund to store credit or as a negative adjustment on the invoice rather than a separate memo document.

The key difference from a refund is that no money moves. That changes how each view reads it:

SituationAccrual viewCash view
Credit on an invoice not yet paidRevenue goes down by the creditNothing changes; the smaller amount is counted when the customer pays
Credit on an invoice already paid, refunded in cashRevenue goes down on the refund dateRevenue goes down on the refund date
Credit on an invoice already paid, kept as store creditRevenue goes downNo cash change; the customer holds a balance to spend later

A lower invoice balance is never treated as money received. Only an actual payment counts on the Cash view.

Example

You knock $100 off a $1,200 invoice for a missed deadline: the invoice balance becomes 1,100 and revenue is reduced by 100.

Harbor Lane Coffee delivers 20 bags of House Blend 1kg to a hotel for $600, invoiced but unpaid. Two bags arrive damaged, so the café credits $60. The receivable drops to $540. On the Accrual view, revenue for the sale is $540. On the Cash view nothing appears yet; when the hotel pays $540, the Cash view counts $540 on that day.

Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.

Also called

  • credit note

Related

  • Refund — Money returned to a customer. Recorded as a negative payment against the original so the invoice’s net stays right.
  • Store credit — A refund issued as credit the customer can spend with you later. A liability, not cash.
  • Invoice — Your request for payment. Sending one books revenue and a receivable; the customer pays through the hosted link.
  • Cash basis — Counting revenue when money lands and expense when you actually pay. Simpler, and what most sole proprietors file on.
  • Accounts receivable — Invoices you have sent that customers have not paid yet. An asset, because the money is coming.

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