The credit memo feature in Docket allows you to manage invoice adjustments and customer credits in a structured and efficient way. It provides tools to configure reasons, manage employee permissions, and oversee the approval and application of credit memos, all within a centralized workflow.
Before You Start
Here are a few things to know before you continue:
- We recommend that only the Account Owner(s) or Admins(s) set up or change the settings covered in this article.
- Depending on how your permissions are set up you may not be able to access some or all of these settings. Please reach out to your Admin if additional access is needed.
Configuring Credit Memos
Adjusting the settings to use the credit memo feature in Docket.
Setting Up Credit Memo Reasons
The first step in using credit memos is to add the reasons you might issue one to a customer. To configure these settings, please go to:
Account > Settings > Company > Billing Settings > Invoice > Credit Memos
In the space provided, you are going to enter your credit memo ‘Reasons.’ Start typing your first reason and then click the gray ‘+’ icon on the right side after entering each one.
Enter as many reasons as you plan to allow for your credit memos. You can always return later to add or remove items from the list.
Click ‘Save Settings’ after entering your reasons and before leaving this page.
Setting Up Employee Access
The second setting to effectively managing your credit memos is to decide who on your team you’d like to give access to creating, approving, and applying credit memos. To configure these settings, please go to:
Employees > Name of Employee > Access > Permissions > Credit Memos
There are three credit memo settings to toggle on and off for an employee.
Credit Memo Access Best Practices
- For individuals that you do not want to interact with credit memos, you will want to toggle off all three settings.
- For individuals that you’d want to be able to create a credit memo but not have access to approve or apply, you should toggle off the first 2 settings.
- For your billing teams, you’d likely want them to be able to create and apply the credit memos so you would want to toggle off just the middle setting.
- For your management/administrative teams who should have full access, you would want to allow all three settings.
- At any time, you are able to come back into the employee access and provide more/less access.
Creating a Credit Memo
Instructions on creating a credit memo in Docket.
Navigating to a Credit Memo
- Open an invoice where a credit memo needs to be created.
- Find the Line Items section of the Invoice and click ‘Credit Memo’ to trigger the credit memo pop-up.
- On the pop-up you will see a section for each line item that is on the invoice. Decide which line item a credit memo needs populated for.
Adding a Credit Memo to an Invoice
- Add the dollar amount you are crediting the customer for in the ‘Adjustments’ section. For example: for a credit of $10, you will type in 10 into ‘Adjustments.’
- Select a ‘Reason’ for the credit memo.
- The reasons that are listed in this drop down are determined by the settings mentioned at the start of this article. If you require a reason that is not shown here, please add the reason by following the steps outlined in the “Configuring Credit Memos” section earlier in this article.
- Add the ‘Quantity’ of credit memos for that adjustment amount. You will most likely be using a quantity of 1.
- Add any notes or information that may be critical as to why and how the credit is needed. The ‘Notes’ section is not customer facing and will only be seen by the internal team reviewing credit memos.
- If you need to add additional credit memos to the other line items, please do so. If you are satisfied with your adjustments, click ‘Confirm’ to add the credit memo to the invoice.
- Once you click confirm, you can verify that the credit memo was created by looking at the invoice and looking at the section that says ‘Credit Memos.’
Credit Memo Approvals and Review
Track and manage credit memo requests and approvals.
Credit Memo Report Approvals
One way to approve pending credit memos is through the Credit Memos report. To start the report, select a date range and then click ‘Run Report’. A list of credit memos that have been created during that time range will populate.
In this Docket report, if you click on a credit memo, you will see the credit memo information slide-out from the right side of your screen:
Here you can click ‘Approve’ at the top, middle of the credit memo. You can also see the origin invoice, and notes left by the employee who made the credit memo, as well as who approved the credit memo.
If you click the ‘Actions’ drop down in the upper, right corner, you will find shortcuts that will take you to the invoice and/or to the clients slideout.
Credit Memos on the Invoice Approvals
Another way to view and approve a credit memo is by going to the customer's direct invoice. This way would require you to already be aware of an invoice that had a pending credit memo attached.
Open the invoice, find the credit memo section of the Invoice and click directly on the credit memo. This will slide out the credit memo details from the right:
Here you can click ‘Approve’ at the top, middle of the credit memo. You can also see the origin invoice, and notes left by the employee who made the credit memo, as well as who approved the credit memo.
Applying Credit Memos
How to apply a credit memo to an invoice.
To start, open up the invoice where a credit memo needs to be applied.
- Click ‘Apply Payment.’
- Select from the credits option and choose between an available credit.
- Click ‘Confirm’ on the pop-up.
- To verify that the credit memo was applied to the invoice, look at the ‘Payments and Refunds’ section of the invoice and notice the decrease in owed amounts.
If you have any questions, please reach out to our Support team through the chat widget on the bottom right of this page or by sending an email to support@yourdocket.com!