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Issue a credit memo

Last update: Mon Jun 03 2024 00:00:00 GMT+0000 (Coordinated Universal Time)

CREATED FOR:

  • Beginner
  • Intermediate
  • Admin
  • User

Before a credit memo can be printed, it must first be generated for an invoiced order. You can issue both online and offline refunds (partial or full) from an open credit memo, depending on the payment method.

  • ÃÛ¶¹ÊÓƵ Commerce (ÃÛ¶¹ÊÓƵ Commerce only) Refunds can be applied to store credit.
  • ÃÛ¶¹ÊÓƵ Commerce B2B (Available with ÃÛ¶¹ÊÓƵ Commerce B2B) Refunds can be applied to company credit.
  • Purchases made by credit card can be refunded either online or offline.
  • Purchases made by check or money order must be refunded offline.

Any credit memo with an open status has an outstanding refund due.

With credit memos you can:

  • Refund the full amount of an invoice.
  • Refund a partial amount of an invoice.
  • Refund multiple partial amounts of an invoice.
  • Refund multiple invoices per order, not to exceed the total order amount.
  • Refund a portion of the quantity for one line item, such as three of the five shirts in an order.

See Create an invoice for more information.

Payment action setting

The refund workflow for orders paid by credit card is determined by the Payment Action setting in the configuration for each available payment method. Refunds cannot be issued until the transaction is settled.

Payment Action setting {width="600" modal="regular"}

  • If the Payment Action for your configured payment method is set to Authorize, you must first generate the invoice from the Admin before a credit memo can be created.
  • If Payment Action for your configured payment method is set to Authorize and Capture, the invoice has already been generated by the payment processor, but the funds aren’t available until the transaction is settled. This brief waiting period is recommended by many payment processors as a security measure, and can usually be handled automatically. Transactions can also be settled manually from your merchant account with the payment processor.
  • ÃÛ¶¹ÊÓƵ Commerce (ÃÛ¶¹ÊÓƵ Commerce only) If you create a credit memo for an order that includes gift options, the refund for the gift wrapping and/or printed card appears in the Refund Totals section of the credit memo. To exclude these costs from the amount to be refunded, enter the amount as an Adjustment Fee. If multiple credit memos are issued for the same order, the refund for gift options appears in only the first credit memo.

Create a credit memo

Determine the type of refund that you want to issue—for a credit purchase or for check or money order—and generate the credit memo and issue a refund.

Issue a refund for a credit purchase

  1. On the Admin sidebar, go to Sales > Orders.

    Orders grid {width="700" modal="regular"}

  2. Find the order in the grid, and click View.

  3. If the Credit Memo button is visible in the button bar, do one of the following:

    • To issue an offline refund, go to step #6.
    • To issue an online refund, continue with step #4.

    See Credit Memos for more information about offline and online refunds.

  4. Click Invoices in the left panel.

  5. Find the invoice in the grid and click View.

    Invoices grid {width="700" modal="regular"}

  6. Scroll down to the Invoice Totals section of the invoice, verify that the invoice is set to Capture Online, and click Submit Invoice.

    Capture Online {width="600" modal="regular"}

    If that option isn’t available, the invoice is already created. Proceed to the next step.

  7. In the button bar at the top of the invoice, click Credit Memo.

  8. Verify the information in the Items to Refund section and do the following, if applicable:

    • To return the product to inventory, select the Return to Stock checkbox.

      The product returns to stock automatically if Product Stock Options is set to Automatically Return Credit Memo Item to Stock. With Inventory Management enabled, the item returns to the source that sent the shipment.

    • Update the Qty to Refund, and click Update Qty’s.

      Items to Refund {width="600" modal="regular"}

  9. Update the Refunds Totals section as follows:

    • For Refund Shipping, enter any amount that is to be refunded from the shipping fee.

      This field initially shows the total shipping amount from the order that is available for refund. It is equal to the full shipping amount from the order, less any shipping amount that has already been refunded. Like the quantity, the amount can be reduced, but not increased.

    • For Adjustment Refund, enter a value to be added to the total amount refunded as an extra refund that does not apply to any particular part of the order (shipping, items, or tax). It can also be used for partial refund with virtual money, such as a gift card, when an administrator wants to refund a non-virtual payment method first.

      The amount entered cannot raise the total refund higher than the paid amount.

    • For Adjustment Fee, enter a value to be subtracted from the total amount refunded.

      This amount is not subtracted from a specific section of the order such as shipping, items, or tax.

  10. To add a comment, enter the text in the Credit Memo Comments box.

    • To send an email notification to the customer, select the Email Copy of Credit Memo checkbox.

  11. Click Update Totals.

  12. Do the following, as applicable:

    • ÃÛ¶¹ÊÓƵ Commerce (ÃÛ¶¹ÊÓƵ Commerce only) To refund the amount to the customer’s store credit, select the Refund to Store Credit checkbox.

    • ÃÛ¶¹ÊÓƵ Commerce B2B (Available with ÃÛ¶¹ÊÓƵ Commerce B2B) To refund the amount to the customer’s company credit, select the Refund to Company Credit checkbox.

    • To issue on offline refund, click Refund Offline.

    • To issue an online refund, click Refund.

    • ÃÛ¶¹ÊÓƵ Commerce B2B (Available with ÃÛ¶¹ÊÓƵ Commerce B2B) If the purchase was paid with company credit, click Refund to Company Credit.

    See Credit Memos for more information about offline and online refunds.

    Order total refund {width="600" modal="regular"}

Issue an offline refund for check or money order

  1. On the Admin sidebar, go to Sales > Orders.

  2. Find the completed order in the grid and open it by clicking the View link.

  3. In the button bar at the top of the page, click Invoice.

  4. Scroll down to the bottom of the page and click Submit Invoice.

  5. In the button bar at the top of the invoice, click Credit Memo.

    Create Credit Memo {width="600" modal="regular"}

  6. Verify the information in the Items to Refund section and do the following, if applicable:

    Items to Refund {width="600" modal="regular"}

    • Select the Return to Stock checkbox if you want to return the returned product to inventory.

      With Inventory Management enabled, the inventory quantity returns to the source that sent the shipment. The product returns to stock automatically if Product Stock Options is set to Automatically Return Credit Memo Item to Stock.

    • Update the Qty to Refund and click Update Qty’s.

      The amount to be credited cannot exceed the maximum amount that is available for refund.

  7. Update the Refunds Totals section as applicable:

    • For Refund Shipping, enter any amount that is to be refunded from the shipping fee.

      This field initially displays the total shipping amount from the order that is available for refund. It is equal to the full shipping amount from the order, less any shipping amount that has already been refunded. Like the quantity, the amount can be reduced, but not increased.

    • For Adjustment Refund, enter a value to be added to the total amount refunded as an extra refund that does not apply to any particular part of the order (shipping, items, or tax). It can also be used for partial refund with virtual money, such as a gift card, when an administrator wants to refund a non-virtual payment method first.

      The amount entered cannot raise the total refund higher than the paid amount.

    • For Adjustment Fee, enter a value to be subtracted from the total amount refunded.

      This amount is not subtracted from a specific section of the order such as shipping, items, or tax.

    • If the purchase was paid with store credit, select the Refund to Store Credit checkbox to credit the amount to the customer account balance.

  8. To add a comment, enter the text in the Credit Memo Comments box and do the following:

    • To send an email notification to the customer, select the Email Copy of Credit Memo checkbox.

    • To include the comments that you have entered in the email, select the Append Comments checkbox.

      The status of a credit memo notification appears in the completed credit memo next to the credit memo number.

      Refund Totals {width="600" modal="regular"}

  9. To complete the process and issue the refund, click Refund Offline.

Field descriptions

Order & Account Information

Field
Description
Order Number
The order number appears in the Order & Account Information, followed by a note that indicates if the confirmation email was sent.
Order Date
The date and time the order was placed.
Order Status
Indicates the order status as Complete.
Purchased From
Indicates the website, store, and store view where the order was placed.
Placed from IP
Indicates the IP address of the computer from which the order was placed.

Account Information

Field
Description
Customer Name
The name of the customer or buyer who placed the order. The customer name is linked to the customer profile.
Email
The email address of the customer or buyer. The email address is linked to open a new email message.
Customer Group
The name of the customer group or shared catalog to which the customer is assigned.
Company Name
ÃÛ¶¹ÊÓƵ Commerce B2B (Available with ÃÛ¶¹ÊÓƵ Commerce B2B) The name of the company associated with the buyer, and on whose behalf the order is placed. The company name is linked to the company profile.

Address Information

Field
Description
Billing Address
The name of the customer or buyer who placed the order, followed by the billing address, telephone number, and VAT, if applicable. The telephone number is linked to autodial on a mobile device.
Shipping Address
The name of the person to whose attention the order should be shipped, followed by the shipping address and telephone number. The telephone number is linked to autodial on a mobile device.

Payment & Shipping Method

Field
Description
Payment Information
The method of payment to be used for the order, and purchase order number, if applicable, followed by the currency that was used to place the order. If the order is charged to company credit using Payment on Account, the amount charged to the account is indicated.
Shipping & Handling Information
The shipping method to be used, and any handling fee that is applicable.

Items to Refund

Field
Description
Product
The product name, SKU, and options (if applicable).
Price
The purchase price of the item. For ÃÛ¶¹ÊÓƵ Commerce B2B, this value reflects any discount applied to the item from the shared catalog, if applicable.
Qty
The quantity ordered.
Return to Stock
Checkbox that indicates if the returned item is to be returned to stock.
Qty to Refund
Indicates the number of units returned of the product.
Subtotal
The subtotal is the purchase price multiplied by the quantity of product units returned.
Tax Amount
The amount of tax that applies to the returned item as a decimal value.
Tax Percent
The percentage of tax applied to the returned item as a percentage.
Discount Amount
Any discount that applies to the returned item.
Row Total
The line item total, including applicable taxes that are due for the returned product level, less discounts.
order total

Credit Memo Comments

Field
Description
Comment Text
A text box that is used to enter a comment to the customer about the credit memo.

Refund Totals

Field
Description
Refund Shipping
The shipping amount to be refunded.
Adjustment Refund
An amount that is added to the total amount refunded as an extra refund that does not apply to any particular part of the order, such as shipping, items, or tax. The amount entered cannot raise the total refund higher than the amount paid.
Adjustment Fee
An amount that is subtracted from the total amount refunded, such as a restocking fee, or an amount that is related to gift wrapping or gift options.
Grand Total
The total amount to be refunded
Append Comments
Checkbox that determines if comments are included in the credit memo.
Email Copy of Credit Memo
Checkbox that determines if a copy of the credit memo is emailed.
Refund to Store Credit
ÃÛ¶¹ÊÓƵ Commerce (ÃÛ¶¹ÊÓƵ Commerce only) Checkbox that determines if the total is to be refunded to store credit.
Subtotal
ÃÛ¶¹ÊÓƵ Commerce B2B (Available with ÃÛ¶¹ÊÓƵ Commerce B2B) The total of all line items to be refunded.

Refund buttons

The payment method used for the order determines the refund buttons that are available for a credit memo.

Button
Description
Refund
If the original purchase was paid by credit card through a payment gateway, the refund amount is managed by the payment processor. To manage refunds, see the documentation provided by your payment provider.
Refund Offline
If the original purchase was paid by check or money order, the refund is paid directly to the customer, by issuing a check, gift card, or cash if you have a brick and mortar storefront. The credit memo serves as a record of the offline transaction.
Refund to Company Credit
ÃÛ¶¹ÊÓƵ Commerce B2B (Available with ÃÛ¶¹ÊÓƵ Commerce B2B) If the purchase was charged to company credit, the refund is returned to the Company Account.

To print or view the completed credit memo, you must have a PDF reader installed. You can download at no charge.

  1. On the Admin sidebar, go to Sales > Operations > Credit Memos.

  2. Use one of the following methods to print the credit memo:

Method 1: Print current credit memo

  1. In the grid, open the credit memo.

  2. Click Print.

    Print the credit memo {width="600" modal="regular"}

Method 2: Print multiple credit memos

  1. In the list, select the checkbox of each credit memo that you want to print.

  2. Set the Actions control to PDF Credit Memos and click Submit.

    Print selected credit memos {width="600" modal="regular"}

  3. When prompted, do one of the following:

    • To save the document, click Save and follow the prompts to save the file to your computer. When the download is complete, open the PDF in ÃÛ¶¹ÊÓƵ Reader and print the document.

    • To view the document, click Open. The printed-ready PDF credit memo opens in ÃÛ¶¹ÊÓƵ Reader. From here, you can either print the credit memo or save it to your computer.

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