Credit Memos Overview

in the nue api, a credit memo serves as a financial document used to record customer account credits, refunds, returns, and billing adjustments credit memos are typically created to reverse or reduce charges on previously issued invoices, handle product returns, process refunds, or apply account credits credit memo management enables businesses to maintain accurate financial records while providing customers with transparent documentation of credits, refunds, and billing adjustments within the nue ecosystem what is a credit memo lifecycle the credit memo lifecycle in the context of the nue api describes the sequence of states and processes a credit memo undergoes from its initial creation to final application or closure this lifecycle automates and manages all financial activities associated with crediting customers, applying adjustments, handling refunds, and ensuring financial reconciliation stages of the credit memo lifecycle in nue draft the credit memo is generated, usually triggered by a invoice cancellation or a stand alone credit memo creation in this stage, the credit memo is not yet visible to the customer or applicable to invoices pending activation the credit memo awaits approval or additional conditions (such as review or final amount calculation) no credit application is initiated at this stage active the credit memo is now officially issued and can be applied to outstanding invoices or processed as a refund via a connected payment system apply credit memos can be applied to reduce the outstanding balance of invoices, and the payment status ("applied" or "partially applied") is updated refund if a refund is processed, the corresponding payment status ("refunded" or "partially refunded") is updated transfer if a payment system is connected, the credit memo will be transferred to the system upon activation, and the payment status is updated from "nottransferred" to "transferred" canceled the credit memo has been officially voided and will be removed from the billing process, ensuring that no further credit application or post processing actions are performed on the document for more information about credit memo lifecycle, please refer to this article all credit memo activities are synchronized with external financial systems (like erp or accounting software) to ensure records match the credit memo's lifecycle ends when its balance is zero—either through application to invoices, refund processing, or write off—and its final state is logged credit memo statuses credit memos can have one of the following statuses, and the actions available for that credit memo depend on its current status status description available actions draft the credit memo is generated but not yet applicable update certain fields \ activate \ cancel pendingactivation the credit memo awaits approval or additional adjustments update certain fields \ activate \ cancel active the credit memo is finalized and can be applied or refunded update certain fields \ cancel \ apply to invoices \ process refund canceled the credit memo is voided delete credit memo payment statuses the payment status of an active credit memo is set based on the application and refund actions performed credit memos can have one of the following payment statuses payment status description available actions nottransferred the credit memo is available for application and has not been transferred to a payment system apply to invoices \ send to payment system \ process refund transferred the credit memo has been successfully transferred to the payment system and is awaiting action process refund \ apply to invoices transfererror the credit memo failed to be transferred to the payment system due to an error resend to payment system applied the full amount of the credit memo has been applied to invoices unapply from invoices partiallyapplied a portion of the credit memo has been applied to invoices, with remaining balance available apply remaining balance \ unapply applied portions refunded the credit memo has been fully refunded to the customer no actions available partiallyrefunded the credit memo has been partially refunded, with remaining balance available for application apply remaining balance \ process additional refund writtenoff the credit memo is considered closed and has been written off no actions available partiallywrittenoff a portion of the credit memo has been written off, with remaining balance available apply remaining balance canceled the credit memo was canceled before any application or refund occurred no actions available creditback the credit memo was created as part of the refund process to offset invoices apply to invoices credit memo vs invoice relationship credit memos and invoices work together in the nue financial ecosystem credit application credit memos can be applied to outstanding invoices to reduce balances refund processing credit memos can be converted to customer refunds through payment systems financial reconciliation both documents are synchronized with external accounting systems audit trail complete transaction history is maintained for both credit memos and invoices use cases for credit memos product returns process returns of physical products or cancel services generate credit memos for returned items with proper asset tracking apply credits to future purchases or process refunds billing adjustments correct billing errors or pricing discrepancies apply promotional credits or discounts retroactively adjust charges based on usage corrections or service level adjustments refund management process customer refund requests with proper documentation handle subscription cancellations with pro rated credits manage dispute resolutions and goodwill credits account management apply account credits from overpayments or deposits process bulk credit applications across multiple invoices handle complex multi invoice credit scenarios next steps explore the credit memo implementation guides fetching credit memos docid\ fe gskwdffyxae80saxrz learn core credit memo retrieval operations with filtering and pagination credit memo data reference docid\ tbatbkhg7ysjlopwwi7x0 complete field reference and data structures advanced credit memo workflows /advanced credit memo workflows mdx complex scenarios and best practices each guide serves as a comprehensive reference for different aspects of credit memo management, offering complete coverage of credit memo features in the nue api