Manual Credit Memos Overview and FAQs

Customer Education

Updated February 19, 2026 22:58

Credit memos in ServiceCore allow you to manage invoice adjustments and customer credits in a structured and efficient way. It helps you keep a clean accounting record while also making your customers happy.

Even if you have automated credit memos set up in your ServiceCore account, you'll probably need to manually create credit memos every once in a while for service delays, overpayments, and more.

As a best practice, we suggest giving customers credits instead of refunds as much as possible. Doing this keeps the cash flow for your business uninterrupted and increases customer retention.

However, sometimes you'll need to refund part of a customer's payment for things like skipped or missed services. We suggest creating a credit memo when refunding customers to keep your accounting reports accurate.

Before You Start

Here are some things you should know before you continue:

To see if you have access to this feature in ServiceCore, please check out this article on user permission levels.
Credit memos are tied to customers and services (line items). Services must be added to your account before you can add them to a credit memo.
Credit memos can only be applied to an invoice one at a time.
Credit memos cannot be edited once they're applied to an invoice as payment.
- If you need to edit a credit memo, you'll have to void the payment first.
Credit memo payments cannot be fully unapplied from their associated invoice(s).
- If you need to fully unapply a credit memo payment, you'll have to void the payment first.
You cannot unvoid a credit memo record or credit memo payment after it's been voided.
Voided credit memo payments will readd the credit memo record to the customer's profile.
Credit memos cannot be deleted.
If you're using QuickBooks Online (QBO) or QuickBooks Desktop (QBD), any credit memo records created in ServiceCore will automatically sync to your QBO/QBD account.
- Credit memos DON'T sync as applied to an invoice; you'll need to manually apply them to their associated invoice(s) in QBO/QBD.
If you're using QuickBooks Online (QBO) or QuickBooks Desktop (QBD), any changes to a credit memo record created in ServiceCore will automatically sync to your QBO/QBD account.
- Changes to a credit memo payment WON'T auto-sync to QBO/QBD; you'll need to manually update the payment record and its associated invoice(s) in your QBO/QBD account.
If you're using QuickBooks Online (QBO) or QuickBooks Desktop (QBD), voiding a credit memo record WON'T auto-sync to your QBO/QBD account; you'll need to manually void the credit memo in your QBO/QBD account.

Create a Credit Memo

There are 5 ways to manually create credit memos:

From inside an invoice at the top that automatically fills in the main details.
From inside an invoice at the bottom that automatically fills in the main details.
From the main Accounting section tied to an invoice that automatically fills in the main details.
From a customer's profile under the Accounting section tied to an invoice that automatically fills in the main details.
From anywhere in your account using the + button to start from a blank credit memo page.

Which method you use depends on why you're creating a credit memo.

If you're creating a credit memo as part of the refund workflow, you'll want to use one of the first four options so that the credit memo is immediately applied to the invoice you're refunding.

If you're creating a credit memo instead of refunding or to give someone a promotional credit, you'll want to use the + button so the credit isn't immediately applied to an invoice.

Create a Credit Memo From an Invoice as Part of a Refund

If your charge your customers in advance, you may run into a scenario where certain paid-for services aren't actually delivered on for some reason, such as an expectation of twice a week cleanings, but a few cleanings are skipped during the rental period.

If something like this happens, you can refund the overpayment and create a credit memo to keep the invoice in the Closed/Paid status.

Invoices create an accounts receivable balance which appear in both the Monthly AR Balance and Aging reports, and represent the amount of money your business is owed.

Credit memos reduce the amount owed on an invoice which reflects in both the Monthly AR Balance and Aging reports as a lesser amount of money your business is owed.

Example: The invoice was initially $300, a credit memo is created for $100, so now your business is only owed $200.

Refunds are a record of cash moving out of your bank account and back into your customer's account, but don't change either the Monthly AR Balance report or the Aging report. Refund records also reopen previously paid invoices so you don't lose track of money still owed.

If you refund an invoice without creating and applying a credit memo, your accounting-related reports will show you incorrect information and the invoice will be marked unpaid/overdue.

If you refund an invoice after creating and applying a credit memo, your accounting-related reports will show correct information and the previously paid invoice will remain paid/closed.

TIP: You can create a credit memo before or after a refund, but we suggest creating the credit memo first because the workflow also involves creating a refund and makes everything cleaner for you.

To manually create a credit memo from a paid invoice, watch the video above or follow the below instructions:

Click on "Create Credit Memo" from the dropdown menu next to or in the invoice depending on where you're starting from. (See above screenshots.)
Review the auto-filled fields at the top to see if anything needs to be adjusted.
Review the line item(s) in the Services section that auto-populated from the paid invoice and, if there's more than one, delete any line item(s) that you don't want included in the credit.
Check the box next to each previously applied payment that you want to credit for the customer.
If needed, adjust the Amount to Unapply field to reflect the amount you want to credit.
Add any necessary notes or attachments to the credit memo and select how you'd like to notify the customer about their credit.

Please Note: If 'Email' is selected as the Preferred Communication, a notification will be sent to the email address in the Email field at the top of the credit memo page. If 'Print' is selected, you'll receive an email with a PDF that you can print and send to the customer.
By default, the option to 'Complete this Credit Memo' will be selected. If you're creating a credit memo after refunding, keep this option selected and click "Apply Credit Memo" to finish creating the credit.
If you're creating a credit memo before refunding, select the 'Create Refund' option and fill out the refund fields that appear when you select 'Create Refund'.
Click "Apply Credit Memo" to save both the credit memo and the refund, and immediately apply the memo to the invoice so it doesn't reopen.

Please Note: Creating a refund in ServiceCore doesn't actually move the funds from your bank to your customer's bank. You'll need to process the refund through your financial institution.

Because the credit memo is immediately applied to the invoice, you'll notice that the payment record for the invoice changes from the customer's original payment method to now saying credit memo as the payment method.

You'll also see the payment method updated in the main Accounting section and the Customer Profiles Accounting section.

TIP: Since the invoice was already paid, you'll want to unapply the original payment so that only the credit memo shows as a payment method.

You can see all of your customers' credit memos in the main Accounting section of your ServiceCore account under the Credit Memos tab.

You can see all of the credit memos for a specific customer in the Accounting section of their profile under the Credit Memos tab.

Create a Credit Memo From The + Button Instead of Refunding/as a Promotion

To manually create a credit memo from scratch, watch the video above or follow the below instructions:

Click on the + button in the top right corner.
Click on "Create Credit Memo" from the dropdown menu
Search for and select the customer this credit is for in the Customer field. Fill out the Service Location and/or Company Division fields as needed.
In the Services section, search for and select the line item(s) you want to give a credit for.

TIP: You can adjust the rate or quantity if only part of the line item's amount should be credited.
Add any necessary notes or attachments to the credit memo and select how you'd like to notify the customer about their credit.

Please Note: If 'Email' is selected as the Preferred Communication, a notification will be sent to the email address in the Email field at the top of the credit memo page. If 'Print' is selected, you'll receive an email with a PDF that you can print and send to the customer.
Click "View Credit Memo" to save the credit and review its details page OR "Apply Credit Memo" to save the credit and immediately apply it as payment to an existing/outstanding invoice for this customer.

You can see all of your customers' credit memos in the main Accounting section of your ServiceCore account under the Credit Memos tab.

You can see all of the credit memos for a specific customer in the Accounting section of their profile under the Credit Memos tab.

Apply a Credit Memo to an Invoice as Payment

Once you fully or partially apply a credit memo as a payment on an invoice, you won't be able to edit it unless you void the payment.

Please Note: While credit memo records auto-sync over to QBO/QBD, the application of a credit memo on an invoice as payment DOESN'T sync to QBO/QBD. You'll need to manually apply the credit memo to its associated invoice(s) in QBO/QBD.

There are 4 ways to apply a credit memo to an unpaid invoice:

From the main Accounting section.
From a customer's profile under the Accounting section.
From inside the credit memo itself.
From inside an invoice.

When it's time to apply a customer's credit memo to an unpaid invoice, just follow the below instructions:

Using one of the methods above, click "Apply Credit" or "Apply Credit Memo". (See above screenshots.)
The top two sections will be automatically filled in with the customer's information and the payment method will default to 'Account Credit. If there is only one credit available in the customer's account, that will be pre-selected. If there is more than one credit for the customer, you will need to select which of the credits you want to apply.

Please Note: If the invoice's amount is less than the amount of the available credit, you'll need to adjust the Amount to Apply field to match the invoice's exact amount.
Select the invoice(s) you want to apply a credit towards by clicking the checkbox next to each one.

TIP: If you started this workflow from inside an invoice, that invoice will be pre-checked. If you started this workflow from outside an invoice, the oldest outstanding invoice will be pre-checked.
Add notes, if needed, and then click "View Payment" to record the credit as the customer's payment.

TIP: If you check the Send Payment Receipt Email to Customer box, a notification will be sent to the customer's email address at the top of the page.

Don't forget to connect the credit memo to its associated invoice(s) in QBO/QBD.

Unapply a Credit Memo Payment From an Invoice

As you handle billing in ServiceCore, you may run into a situation where you need to edit or void a credit memo after it has already been applied as payment on an invoice. Or you may need to adjust the applied amount of the credit memo so it uses less or more of the customer's available credit.

Because credit memo records can only be edited or voided if they're not applied as payment on an invoice, you'll first need to unapply the credit memo payment and turn it back into a credit memo record.

If you just want to adjust the applied amount of the credit memo, you can do that without unapplying the credit memo.

Fully Unapply a Credit Memo Payment

To fully unapply a credit memo payment so that you can edit or void the underlying credit memo record, just follow the below instructions:

From inside the payment record, click "Void Payment".
Add your reason for voiding the payment in the Reason Voided field.
Click "Void Payment".

Voiding the credit memo payment record will automatically revert the credit memo to an Unapplied status and you can edit or void it as needed.

TIP: While you can fully delete the credit memo payment record, we strongly suggest voiding the payment instead to keep your accounting records organized.

Don't forget to void the payment and adjust the credit memo in your QBO/QBD account.

Partially Unapply a Credit Memo Payment

To partially unapply a credit memo payment so that only a specific portion of the underlying credit amount is used, just follow the below instructions:

From inside the payment record, click "Edit Payment".
Change the amounts displayed in the credit memo's Amount to Apply field and the invoice's Invoice Payment field so they match the new amount you want to use from the underlying credit amount.
Click "View Payment" at the bottom to save your changes.

The leftover amount that is now no longer applied will automatically appear in the customer's profile and the credit memo will show a Partially Applied status.

TIP: If you're using QuickBooks Online (QBO) or QuickBooks Desktop (QBD), the updated credit memo amount will auto-sync with QBO/QBD, but you'll need to manually update the payment amount for the associated invoice in your QBO/QBD account.

Edit a Credit Memo

There are two ways to think about credit memos in ServiceCore:

An Unapplied credit memo record showing that a customer has an available credit to be used.
A Partially Applied or Closed (fully applied) credit memo payment that's already been used on a customer's invoice.

Only Unapplied credit memo records can be fully edited.

If a credit memo has already been fully or partially applied to an invoice as a payment method, it can only be edited if you void the payment completely.

If you're using QuickBooks Online (QBO) or QuickBooks Desktop (QBD), any changes to a credit memo record in ServiceCore will automatically sync to your QBO/QBD account.

Please Note: Changes to a credit memo payment WON'T auto-sync to your QBO/QBD account; you'll need to manually update QBO/QBD to reflect the credit memo payment changes.

There are 3 ways to edit an Unapplied credit memo:

From the main Accounting section.
From a customer's profile under the Accounting section.
From inside the credit memo itself.

To edit an Unapplied credit memo, just follow the below instructions:

Using one of the above methods, click "Edit Credit Memo". (See above screenshots.)
Make your changes.
Click "View Credit Memo" to save your changes.

Void a Credit Memo

There are two ways to think about credit memos in ServiceCore:

An Unapplied credit memo record showing that a customer has an available credit to be used.
A Partially Applied or Closed (fully applied) credit memo payment that's already been used on a customer's invoice.

Only Unapplied credit memos can be voided.

Any credit memo that has already been applied to an invoice as a payment method cannot be voided unless you first void the credit memo payment completely.

If you're using QuickBooks Online (QBO) or QuickBooks Desktop (QBD), voiding a credit memo record in ServiceCore WON'T automatically sync to your QBO/QBD account. You'll need to manually update QBO/QBD to reflect the changes.

Once a credit memo has been voided, it cannot be unvoided.

Please Note: There is currently no way to delete a credit memo.

There are 3 ways to void an Unapplied credit memo:

From the main Accounting section.
From a customer's profile under the Accounting section.
From inside the credit memo itself.

To void an unapplied credit memo, just follow the below instructions:

Using one of the above methods, click "Void Credit Memo". (See above screenshots.)
It's not required, but we strongly suggest entering a reason for why you're voiding the credit memo.
Click "Void Credit Memo" to save your notes and void the credit.

The credit memo will now display a "Void" label when you look at the main Accounting section of your ServiceCore account or the Accounting section of a customer's profile.

Don't forget to void the credit memo in QBO/QBD.

Frequently Asked Questions (FAQs)

These FAQs address common questions and quick clarifications to help you use this feature with confidence.

Can I Create a Credit Memo for Surcharges?

Yes, but surcharges aren't automatically included in a credit memo as line items.

You'll see need to add it as a line item under the Services section of the credit memo when you're creating it.

Do I Have to Apply the Full Amount of a Credit?

No. You can adjust the Amount to Apply field when you're applying a credit to an invoice to that only a part of the credit is applied and the rest is unapplied.

You can then apply the rest of that credit to a different invoice as needed.

Can I Only Apply Credits to Paid Invoices?

No, you can preemptively apply a customer's credit to their unpaid invoice so they only send you payment for the remainder of the invoice, if anything's left.

What Happens When I Apply a Credit to a Paid Invoice?

Immediately after applying a credit to a paid invoice, you'll see two separate payments associated with that invoice.

You'll want to unapply the original payment so that only the credit memo appears as the payment on the invoice, otherwise it'll look like the customer paid twice for the same invoice.

If you have any questions, please reach out to our Support team through the chat widget on the bottom of this page or by sending an email to support@servicecore.com!