Add a Credit Memo

A credit memo is a document issued by a seller to reduce the amount a buyer owes after a correction or change in a previous transaction. It can be used for various purposes, such as:

Reducing an amount owed due to a retrospective discount
Reflecting a contract change
Recording a cancellation or reversal of an invoice
Writing off bad debt
Refunding a customer payment

In Rillet, Similar to contracts and invoices, credit memos can have long term revenue schedules and impact ARR based on the products selected.

Before creating a credit memo, verify that the related invoice or customer account exists. You can issue credit memos tied to invoices or as standalone records for refunds or adjustments.

To add a credit memo:

Go to Accounts Receivable > Credit Memos.
Select Add Credit Memo.
Select a Customer.
(Optional) Select an Invoice according to your needs:
- If an invoice is selected, the credit memo will reduce the balance of that invoice
- If no invoice is selected, the credit memo will remain open until it is either refunded to applied to another invoice.
Select the Credit Memo date.
Select a product in Add Product. Then, fill in the product information accordingly:
- Description: Enter a description of your product.
- Amount: Enter the amount this product costs per unit.
- Quantity: Enter the Quantity.
- Revenue Account: Update the GL Account if needed.
- Revenue Recognition: Choose the Revenue Recognition dates. This will impact both the accounting revenue and the ARR metrics.
- Tax:
  - Toggle right if you want to add tax information.
  - Enter a Tax Percentage and or choose the VAT rate.
When you’re done filling in the information, select Save on the top right corner.