Overview
Credit Memos settle disputes between a buyer and a seller, such as services not received or price changes.
Credit Memos Overview
Note: Credit Memos in Aria are not the same as Credit Notes in Aria.
Credit Notes in Aria exist to comply with EU laws to track VAT tax deltas for invoices that have been voided and result in a customer credit. In this scenario, Aria customers receive a statement-like notification of a credit. Aria retains a numbering system for statements and credit notes as an accounting best practice to comply with these EU laws.
Types of Credit Memos
There are 4 types of credit memos in Aria:
- Invoice-Based: An Invoice-based credit memo is applied to line items of a specified, qualifying invoice. A credit can be applied, up to the total of the line item.
- General: A General credit memo can be issued as a token of good will. In contrast to an invoice-based credit memo, this is an on-account credit memo, and is not associated with an invoice.
- Cancellation: A Cancellation credit memo can be issued to credit a customer for the difference in time for which a service was paid for and when it was cancelled. In contrast to an invoice-based credit memo, this is an on-account credit memo, and is not associated with an invoice.
- Price Change: A Price Change credit memo can be issued to credit the difference between the amount that a customer paid for a service at the original price, and the new price of the item, based on the effective date of the new pricing. In contrast to an invoice-based credit memo, this is an on-account credit memo, and is not associated with an invoice.
The credits resulting from a credit memo application have an immediate impact on the account’s balance; and the account holder receives an email notification in the format of a credit memo.
Credit Memo Templates
To send credit memo notification emails to customers, you must work through your Aria Implementation team. After you agree on the content of the credit memo notifications with the Aria Implementation team, the Aria Support team develops the template and makes it available in your Aria instance. You can have one or more credit memo templates to support various use cases such as the branding of multiple products or localization.