---
title: How to Create a Credit Memo
description: This guide walks your though how to create a credit memo and a few tips
---
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# How to Create a Credit Memo
> Prerequisites (one‑time setup)
- **Enable Credit Memos** for the carrier (configured in **Vendor Configurations**).
- **Tip:** If you don’t see a **Credit Memo** checkbox when creating an invoice, contact your **Customer Success Manager** to enable credit memos.
- **Permissions:** If you use **Permission Sets**, ensure **“Credit Memo Creation”** is added to the roles that need it (via **Permission Set Builder**).
#### Step‑by‑Step
### 1) Start the credit memo
1. Click **Create New Invoice** from the main menu.
2. Select the **carrier** you are creating the credit memo for.
**Tips for this step**
- If you work with multiple carriers, confirm you’re in the correct carrier workspace first.
### 2) Find and select the claim/estimate
1. In **Claim Search**, enter the **Claim Number** (or other supported search value) and click **Search**.
2. In **Results**, select the correct **claim/job** to populate **Estimates**.
- **Note:** Estimate details may not return until the estimate is **approved** in the estimating platform.
3. In **Estimates**, highlight the appropriate **estimate** and click **Select Estimate**.
**Tips for this step**
- If the claim has multiple estimates, verify you’re crediting the correct one before proceeding.
### 3) Enter assignment and header details
1. In the **Assignment** section, enter:
- **Invoice #** → your **credit memo number**
- **Assignment Type** (dropdown)
- **Assignment Category** (dropdown)
2. Check the **Credit Memo** box to switch the invoice to credit behavior.
3. In **Crediting Invoice** (dropdown), either:
- Select a **specific invoice** to credit, **or**
- Leave **Select Crediting Invoice** to **start from scratch**.
**Tips for this step**
- Selecting a specific invoice to credit helps align amounts/lines automatically for reversals where appropriate.
### 4) (Optional) Add adjusters to apply negative compensation
If you run compensation through the system:
1. Use **Add Multiple Adjusters** to select the adjusters to include.
2. Click **Add**.
**Alert**
- Any adjuster **added to or creating** the credit memo will receive a **negative compensation amount** associated with the credit.
### 5) Credit Units of Measure (UoMs)
1. Enter a **quantity** for each **Unit of Measure** you need to credit (e.g., Mileage, Additional Buildings).
2. For **Flat Fees** you need to credit, **check the box** next to each fee.
**Tips for this step**
- On a credit memo, quantities/fees you add are converted to **negative values** during calculation and will **reduce** the total.
### 6) Use deductions or additional expenses (credit behavior)
- **Amount Deduction:** Add a **credit line** (reduces total).
- **Additional Expense:** Add a user‑defined **line and amount** that behaves in **reverse** on a credit memo (i.e., lowers the total).
**How to add**
1. In **Field Name**, enter the name of the deduction/expense.
2. In **Enter Amount**, enter the amount.
3. Click **Add** (the line appears in the list).
**Tips for this step**
- Use clear, auditable descriptions (e.g., “Return of Admin Fee—approved by on ”).
### 7) Calculate and review
1. Click **Calculate**.
2. Confirm the following in the preview/summary:
- Field fee, flat fees, and units of measure lines appear as **negative** amounts and are included in the **negative total**.
- Any **added adjusters** show **negative compensation**.
3. If something isn’t right, adjust lines and **Calculate** again.
**Tips for this step**
- Recalculate as often as needed before you submit; calculation does **not** submit the credit memo.
### 8) Submit
1. When everything is accurate, click **Submit**.
**After submission**
- The credit memo appears on the **Dashboard** like any other invoice.
- You can also view it on **Invoice Management** (all amounts appear clearly as **negative** when viewing the document).
#### Reporting & downstream effects
- If you run **Adjuster Compensation**:
- Credit memos appear as a **negative amount owed** to the adjuster in:
- **Adjuster Payroll** report
- **Compensation Fees** report
#### Help & Support
If you need assistance:
- Email **[support@vipsoftware.com](mailto:support@vipsoftware.com)**
Include:
- Carrier, Claim #, and (if applicable) the **Crediting Invoice** number
- Screenshots of the **Assignment** and **calculated** views
- A short description of the expected vs. actual outcome
### Quick Reference (what’s a step vs. a tip?)
- **Actual Steps**:
- Enable feature (once) → Confirm permissions (once) → Create New Invoice → Select carrier → Search claim → Select estimate → Enter header details (Invoice #, Assignment, **Credit Memo** box) → Choose crediting invoice or start from scratch → (Optional) Add Multiple Adjusters → Enter UoM and check Flat Fees to credit → Add Amount Deductions/Additional Expenses (if needed) → **Calculate** → Review negatives and totals → **Submit**.
- **Tips & Alerts (associated to steps)**:
- **Prereq tips**: Feature enablement, permission set access, CSM for missing checkbox
- **Search tip**: Estimate may not appear until approved in estimating platform
- **Adjusters alert**: Negative compensation will be produced for adjusters added/creator
- **UoM/Fees tip**: Credit memo lines calculate as **negative** values
- **Calculation tip**: Recalculate freely before submission
- **Reporting tip**: Negative compensation reflected in payroll/compensation reports
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