> ## Documentation Index > Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt > Use this file to discover all available pages before exploring further. # Credit Memos > Track customer credits, review remaining balances, understand where credits came from, and void unused credit when it should no longer be available. Credit memos represent customer credit that can be applied to future balances. They can come from a manual credit, an overpayment, a return settlement, or another customer-facing correction workflow. ## Open Credit Memos Open **Accounting**, then **Credit Memos**. The page shows customer credit across the entity, including total issued, outstanding credit, active memo count, customer account, original amount, remaining balance, reason, source, created date, expiration, and status. Use the search field to find credits by account name, account number, or reason. Use the status and date filters when you need to isolate active, partially used, applied, voided, or expired credits. AR Management dashboard with receivable totals, aging buckets, and customer balance review ## Understand Credit Status * **Active**: the full remaining balance is available to apply. * **Partially used**: part of the credit has already been applied, and the remaining balance is still available. * **Fully applied**: the credit has been used up. * **Applied**: legacy or imported wording for a used credit. * **Voided**: the unused balance was removed from the customer's account. * **Expired**: the credit passed its expiration policy and is no longer available. Watch the **Balance** column, not only the original amount. A customer can have a large original credit with little or no remaining balance. ## What Happens When a Credit Memo Expires When a credit memo passes its expiration date, Arcus automatically transitions it to expired status and recognizes the remaining balance as forfeited income: 1. **Status changes** from active or partially used to expired. 2. **Customer credit balance** is reduced by the remaining balance amount (no longer available for future use). 3. **Journal entry is posted** with a debit to the customer escrow account and a credit to the "Credit Memo Forfeited Income" GL account (a revenue account on the 4000 series). 4. **Balance remaining is preserved** as an audit record showing what amount was forfeited. Do not edit or manually clear this column -- it is a sealed historical record. To review all forfeited credit revenue in a period, use the Account Ledger report and filter by the "Credit Memo Forfeited Income" GL account. If an expired credit should not have expired (e.g., a customer policy change), contact your accounting administrator. Reversing an expiration requires a manual journal entry and audit coordination. ## Review A Customer Credit 1. Open **Accounting > Credit Memos**. 2. Search for the customer account, reason, or account number. 3. Check the **Amount** and **Balance** columns. 4. Review the **Source** column to understand why the credit exists. 5. Check the expiration date before promising the credit to a customer. 6. Click the account link to open the customer account when you need payment history, transactions, or communications. ## Apply A Credit Credit memos are usually applied from the payment workflow or customer account workflow, not from the Credit Memos list itself. When you apply a credit to an order or invoice, Arcus reduces the available credit balance and reduces the customer balance due. Use a credit memo only for the customer that owns it. If the wrong customer has a credit, do not move it casually. Review the source transaction, void the incorrect credit if appropriate, and issue the correct adjustment through your accounting policy. ## Void Unused Credit You can void active or partially used credit memos when the remaining balance should no longer be available. 1. Open **Accounting > Credit Memos**. 2. Find the active or partially used credit memo. 3. Click the void action on the row. 4. Enter an optional reason. 5. Confirm **Void Credit**. Voiding removes the remaining balance from the customer's available credit and records the accounting reversal. Amounts already applied stay in the audit trail. Voiding a credit memo cannot be undone from the Credit Memos page. Confirm the customer, remaining balance, source, and reason before you void it. ## Common Blocks * **No credit memos appear**: credits are created only after a credit workflow runs, such as overpayment, return settlement, or manual credit issuance. * **Void action is unavailable**: the credit is already fully applied, voided, expired, or has no remaining balance. * **Credit is expired**: do not apply it unless an authorized accounting user reactivates it according to policy. * **Balance looks wrong**: review the customer account transactions and payment history for prior credit applications. * **Credit should refund cash instead**: use the return, payment, or refund workflow that matches the original transaction. ## Related Articles Review receivables, aging, statements, and customer balances. Apply customer credits while recording payment activity. Understand return settlement choices, including store credit. Review posted GL activity and source transactions.