Credit Memo

Definition

A credit memo describes an invoice correction or refund, e.g. after a cancellation, a warranty claim, during a trade-in or a repayment of a rental deposit.

Credit memos are also referred to as reverse invoices and favor the recipient of the service – in most cases, a customer. Microsoft Dynamics Business Central simplifies the creation and management of credit memos in various business areas, e.g. in sales, purchases, service and rental.