Create and Apply Later Credit Memo

Last updated: October 24, 2025

Credit memos in Tabs can either be applied immediately to an invoice or created and left open to apply at a later time. This guide shows you both flows.

Creating a Credit Memo Without Applying

Find the Invoice
- From Invoicing > Billing, select any invoice that is applicable for a credit (already sent and has an outstanding balance)
- Click "Need to do something else?" and choose “Create or apply credit memo.”
Create the Credit Memo
- Follow the create flow:
  - Select items or add one-off items.
  - Enter credit quantities and amounts.
  - Review credit details.
Choose “Create only”
- At the final step, select Create only (instead of “Apply now”).
- This creates the credit memo but leaves it open, not yet applied to an invoice.
Result
- The credit memo is listed under Invoicing > Credit memos with a status of OPEN.

Viewing Open Credit Memos

Go to Invoicing > Credit memos.
You’ll see:
- Number
- Customer
- Credit memo date
- Last applied
- Status (OPEN or APPLIED)
- Remaining balance
- Amount

Open credit memos show as OPEN until you apply them.

Applying a Credit Memo Later

Find the Invoice to Apply To
- Navigate to the invoice you want to reduce.
- Click the "Need to do something else?" menu.
- Select “Create or apply credit memo.”
Select an Existing Credit Memo
- Tabs will show available open credit memos for that customer.
- Choose the one you want to apply.
- Enter a credit amount that does not exceed the balance due or total available credit.
Apply the Credit
- Confirm the application.
- The credit memo status will update to APPLIED.
- The invoice balance will be reduced accordingly.

Key Points

Create only = leaves the memo open for later use.
Apply now = immediately applies the credit to the selected invoice.
Open credit memos can be applied to future invoices or across multiple invoices.
Customers only receive notifications once a credit is applied (not when created).