When a credit memo is applied to an invoice, the credit is settled — it is locked to that invoice and the invoice balance is reduced. Settled credits cannot be reassigned to a different invoice.
How to Apply a Credit Memo to an Invoice
Navigate to CRM → Credit Memos and open the customer's credit memo. The credit must be in Unsettled status with a remaining balance.
Click Apply Invoice.
Select the invoice(s) to apply the credit to from the list of open invoices.
Enter the amount to apply. Partial application is supported if the credit balance is larger than the invoice.
Click Apply. The credit status updates to Settled once the full balance has been applied.
How to Issue a Refund Instead
If the credit should be refunded to the customer rather than applied to an invoice:
Open the credit memo (must be Unsettled with a remaining balance).
Click Give Refund.
Confirm. The entire remaining unsettled balance is issued as a refund.
Refunds apply to the full remaining unsettled balance — partial refunds are not supported.
Applied Credits Cannot Be Reversed
Once a credit is applied to an invoice, the settlement is permanent. There is no option to unapply or move a settled credit to a different invoice.
Before applying, confirm:
The correct invoice is selected.
The invoice number and balance are accurate.
Viewing Credit Settlements
To see what a credit has been applied against, open the credit memo and click Settlements. This shows all invoices and refunds the credit has been applied to, with amounts and dates.