Credit memos, credits, and refunds can be confusing. Learn the differences between these transactions, and how to record them properly.

  • Credit memo: A posting transaction you can apply on a customer's invoice as payment.
  • Delayed credit: A non posting transaction you can later include as a line item on a customer's invoice. This transaction only affects the customer's balance once it is added to an invoice.
  • Refund: A posting transaction used to reimburse a customer's money.