--- title: How do I create a Credit Memo? description: Here you will learn all about how to create an Invoice Credit Memo, a Customer Credit Memo, or an unaffiliated Credit Memo. --- [Skip to content](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-create-a-credit-memo#main-content) English Show submenu for translations [More support](https://support.digitbridge.com/digitbridgeclientknowledgebase/kb-tickets/new?hsLang=en) ![white-logo-db.png\]](https://support.digitbridge.com/hs-fs/hubfs/white-logo-db.png?height=50&name=white-logo-db.png) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://support.digitbridge.com/digitbridgeclientknowledgebase/kb-tickets/new) - Go to digitbridge.com Go to digitbridge.com Hello. How can we help you? - There are no suggestions because the search field is empty. 1. [DigitBridge Knowledge Base](https://support.digitbridge.com/digitbridgeclientknowledgebase?hsLang=en) 2. [Accounts Receivable](https://support.digitbridge.com/digitbridgeclientknowledgebase/accounts-receivable?hsLang=en) 3. [Credit Memo](https://support.digitbridge.com/digitbridgeclientknowledgebase/accounts-receivable?hsLang=en#credit-memo) # How do I create a Credit Memo? ## Here you will learn all about how to create an Invoice Credit Memo, a Customer Credit Memo, or an unaffiliated Credit Memo. From an accounting standpoint, a Credit Memo (CM) is typically considered the same thing as a return. But in order to keep things more detailed, DigitBridge treats them as separate items. ***Warning:** It is important to note that **item quantities entered in any CM will NOT be reflected in the item's inventory count** in WMS or in ERP*. ### Invoice Credit Memo (AKA Invoice Return) First, we are going to go over creating an Invoice Credit Memo (CM) - a CM associated with a particular invoice. You will follow the same process whether you are returning all of the items on the invoice or just a few.  To start, you must **create a Return Management Authorization (RMA)** either [in ERP](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-create-a-return-in-erp?hsLang=en) or [in WMS](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-create-a-return-in-wms?hsLang=en). Then you will **[receive the return](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-manually-receive-a-product-return?hsLang=en)**. The last step will be to **close the return in ERP**. Invoice CM/Return information [can be found in this guide](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-close-a-return?hsLang=en) under Invoice Return. ***Tip:** This is the flow you should follow when processing a chargeback for damaged product or a short-shipped order if the inventory needs adjusting. If it does not need adjusting, follow the **Unaffiliated Credit Memo** flow.* ### Customer Credit Memo A Customer Credit Memo is a CM associated with a customer (rather than a specific invoice). In ERP, go to **Accounts Receivable \> Credit Memo Issuance**. **![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-21-54-4134-PM.png?width=688&height=905&name=image-png-Apr-02-2024-11-21-54-4134-PM.png)** **Click Add**.  ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-22-44-3963-PM.png?width=688&height=147&name=image-png-Apr-02-2024-11-22-44-3963-PM.png) **Type in the customer #** and either **hit the Tab key or click anywhere outside of the field**. Make sure the Date, Description, and Return Ref # are all filled out if needed. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-24-23-5268-PM.png?width=688&height=377&name=image-png-Apr-02-2024-11-24-23-5268-PM.png) Next, you will **add the items going into the return**. **Enter in the SKU and the Qty Returned**. Make your additions in-line until you are done. The total will reflect in the **Balance** at the bottom of the page. ***Caution:** The **Balance** is the most important thing - make sure it is exact*. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-26-22-1037-PM.png?width=688&height=814&name=image-png-Apr-02-2024-11-26-22-1037-PM.png) **Click Save** when you're done. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-27-02-3808-PM.png?width=688&height=146&name=image-png-Apr-02-2024-11-27-02-3808-PM.png) **Click Yes**. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-27-20-8806-PM.png?width=451&height=195&name=image-png-Apr-02-2024-11-27-20-8806-PM.png) A Credit Memo # will be generated. Back on the Credit Memo List screen, your new CM will appear at the top. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-29-06-8142-PM.png?width=471&height=266&name=image-png-Apr-02-2024-11-29-06-8142-PM.png) ***Note:** Credit Memos will not post to QuickBooks until they have been applied to an invoice payment.* ### Unaffiliated Credit Memo The first two CM options are related to specific, stockable items, but you can also create a CM in a vacuum (any dollar amount you want, for any reason). Let's say you want to credit them for the shipping costs associated with an order or orders the customer made. This does not require a return to be created.  Go to **Accounts Receivable \> Credit Memo Issuance**. **![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-21-54-4134-PM.png?width=688&height=905&name=image-png-Apr-02-2024-11-21-54-4134-PM.png)** **Click Add**.  ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-22-44-3963-PM.png?width=688&height=147&name=image-png-Apr-02-2024-11-22-44-3963-PM.png) **Type in the customer #** and either **hit the Tab key or click anywhere outside of the field**. Make sure the Date, Description, and Return Ref # are all filled out if needed. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-24-23-5268-PM.png?width=688&height=377&name=image-png-Apr-02-2024-11-24-23-5268-PM.png) Below, **enter in the [SKU(s) for the non-stockable items](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-create-a-non-style-non-inventory-item?hsLang=en)**. **Set the Qty** - if you're manually entering in a price, set it at 1. Adjust the price if you need to. **Click Add Item** to add any new line items. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-33-23-1299-PM.png?width=688&height=423&name=image-png-Apr-02-2024-11-33-23-1299-PM.png)Check the **Balance** at the bottom. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-34-08-5383-PM.png?width=688&height=410&name=image-png-Apr-02-2024-11-34-08-5383-PM.png)When you're done, **click Save**. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-27-02-3808-PM.png?width=688&height=146&name=image-png-Apr-02-2024-11-27-02-3808-PM.png) **Click Yes**. ![](https://support.digitbridge.com/hs-fs/hubfs/image-png-Apr-02-2024-11-27-20-8806-PM.png?width=451&height=195&name=image-png-Apr-02-2024-11-27-20-8806-PM.png) ***Tip:** This is the workflow you should follow if you are processing a chargeback for a discount or a rebate credit.* ***Note:** Credit Memos will not post to QuickBooks until they have been applied to an invoice payment.* --- See related: [How do I partially apply a credit memo?](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-partially-apply-a-credit-memo?hsLang=en) [How do I refund a credit memo?](https://support.digitbridge.com/digitbridgeclientknowledgebase/how-do-i-refund-a-credit-memo?hsLang=en)   - 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