Configure credit memo settings

❗ Important: Credit memo auto-apply controls are in Early Availability (EA) status. This capability is not enabled by default. Contact your AppDirect technical representative to request it.

Marketplace Managers can control whether open credit memos are automatically applied to outstanding invoices. When the feature is enabled, you can set marketplace-wide auto-apply behavior and optionally override it for individual credit memos at creation time.

For an overview of credit memos and application behavior, see Credit memos. For creation steps, see Create credit memos.

Automatically apply credit memo to outstanding invoices

The Automatically apply credit memo to outstanding invoices setting controls whether the platform applies available credit memos to eligible unpaid invoices without manual action.

When the auto-apply controls feature is enabled for your marketplace, this setting defaults to on to preserve existing behavior. Marketplace Managers can disable it to manage credit memo reconciliation manually.

Behavior

• When on, the platform can apply open credit memos to outstanding invoices for the same customer. Per-memo controls on the credit memo creation screen are available so you can override auto-apply for a specific credit memo.
• When off, credit memos are not applied automatically. The per-memo Auto-apply this credit memo to outstanding invoices checkbox is not available during creation. Marketplace Managers can still apply credit manually from the credit memo or invoice detail pages. See Manage credit memos.
• The marketplace-level setting applies at the time of application, regardless of when the credit memo was created.
• Changes to this setting are tracked in the audit log.

Disable auto-apply credit memo for Invoices

The Disable auto-apply credit memo for Invoices checkbox in the Credit Memo section controls whether credit memos are applied to invoices automatically at the marketplace level.

Behavior

• When checked, credit memos are not automatically applied to invoices and must be applied manually.
• When checked, ad hoc credit memo creation does not offer the option to automatically apply to open invoices.
• When unchecked, the platform can apply open credit memos to eligible unpaid invoices according to the Automatically apply credit memo to outstanding invoices setting and any per-memo selections at creation time.

To configure credit memo auto-apply

📝 Note: This documentation page may refer to Manage > Marketplace in navigation steps. If the Manage option is not available in your navigation, click the grid icon on the top-left corner of your header and click Marketplace.

1. Go to Manage > Marketplace > Settings > BILLING SETTINGS | Billing Functionality > Credit Memo.
2. Enable or disable Automatically apply credit memo to outstanding invoices.
3. Select or clear Disable auto-apply credit memo for Invoices as needed.
4. Click Save.

Per-memo auto-apply at creation

When Automatically apply credit memo to outstanding invoices is enabled and Disable auto-apply credit memo for Invoices is unchecked, the Auto-apply this credit memo to outstanding invoices checkbox appears on credit memo creation screens:

• Manage > Marketplace > Dashboard > BILLING | Credit Memo > Create credit memo (ad hoc)
• Manage > Marketplace > Dashboard > BILLING | Invoices > invoice number > Create Credit Memo (from invoice)

The checkbox default mirrors the marketplace-level setting. You can override it for a specific credit memo during creation. When your selection differs from the marketplace default, override notice text appears on the creation screen.

You cannot change auto-apply on existing credit memos or bulk-toggle auto-apply states after creation.

Limitations

The following are not included in this release:

• Per-company overrides and self-serve opt-outs for company administrators
• Editing auto-apply on existing credit memos or bulk-toggling auto-apply states
• Configurable application order logic, such as FIFO or proration