Specify the credit memo ID and the amounts to be applied, with the total of all applied amounts not exceeding the credit memo’s balance.
The credit amount for each invoice can’t surpass the original charge or adjustment amount, and the overall credit amount must not exceed the invoice’s outstanding balance. The exceptions include any taxes calculated by an external service.
For example, your organization sold 10 tablets at US$500 each, totaling $5000, to a vendor who later reported that 6 tablets were defective. Using this method, your accounts receivable team creates a $3000 credit memo and applies this credit to the original invoice.
Use this method if an error occurred when a credit is issued. For example, if an incorrect credit memo is applied to an invoice, or if a credit memo is created for an incorrect amount, use this method to unapply the credit memo.