Issue Credit Memos

A credit memo records an agreed reduction, such as an overcharge, warranty, or discount. It does not refund a card payment. Check whether the credit is only issued or has actually been applied before telling a customer the balance changed.

Issue a Credit

1. Open the bill and choose Issue Credit.
2. Enter the amount and choose Overcharge, Warranty, Discount, or Other.
3. Add a note explaining the agreement.
4. Confirm and review the credit in the bill's Credits area.

Each credit gets a CM number and remains linked to the original bill. It also appears in customer statements and the Reports ledger; it is not a separate row in the Invoices list.

Issued and Applied Are Different

An issued credit is a record of the agreement. Issuing it alone does not reduce the bill's payable amount or change what an existing payment link asks for. Only a credit recorded as applied reduces the balance it is applied to. Check the bill's actual remaining balance and customer-facing payment page before asking for payment.

A credit memo does not itself replace the invoice PDF or appear as a new item on its payment page. Late fees stop on a bill carrying a credit.

Correct a Bill or Return Money

If an unpaid job bill has the wrong charges, use the appropriate correction workflow rather than relying on an issued credit to change the payment link. See Change the Amount on a Bill.

For money already collected by Stripe or Square, process a refund through the provider that took it. Check the provider and KeyBolt payment history afterwards. Removing a manual payment is only for correcting your record, not returning money. See Remove a Payment Recorded by Mistake.

Last reviewed October 12, 2026.