Credit Memos for Unpaid or Partially Paid Invoices
Approving a credit memo creates a destination-related A/R transaction record on the related invoice. For unpaid or partially paid invoices, you have the option to not apply it to an invoice. This is useful in a scenario where your customer cancels the subscription mid-plan or when the subscription is canceled before the customer had paid for it.
When you approve an unpaid or partially paid invoice, clear the Auto Apply Credit to Invoice checkbox. A destination-related A/R Transaction will not be created on the related invoice.
If you forget to add a credit memo template at the account level, clicking Create Credit Memo produces a "Could not find suitable credit memo template" warning. This indicates that a credit memo has been created, but the document has not because no template is available. Go to the related account, add a credit memo template, and click Redirect to Credit Memo. This takes you to the credit memo detail page, where you can regenerate the credit memo by clicking Regenerate Attachment.
