Credit Memos generate Unapplied Payments on customer accounts. They usually are generated when an invoice is voided, after a payment has been applied to the invoice. The credit memo takes the place of the payment on the invoice, but then the account is left with an unapplied payment.
Rarely, you may need to remove the credit memo / unapplied payment from the customer's account. You cannot delete or remove a credit memo from a voided invoice after it has been applied to it. But you can balance out the customer account with two methods: Create an additional invoice or Create a cash refund.
Creating an invoice to balance out a customers unapplied payments
- Create a Product in the Commerce Module with the product name something like "Accounting Adjustment"
- Go the the Invoices Module and press the green +Invoice button
- Select the account with the unapplied payment balance you'd like to get rid of
- Add the "Accounting Adjustment" product to the invoice, and adjust the amount to the unapplied amount you'd like to subtract from the account
- Press the arrow next to the green "Save as a Draft" button and select "and post"
- After the invoice is created, pay the invoice and use the Unapplied Payment to mark the invoice paid
- You can put a private note on the invoice if necessary
Using a cash refund to balance out a customers unapplied payments
- Got to the Payments Module (also known as Cash Receipts Module)
- Click the green +Refund button
- Search for and select the customer / contact with the unapplied balance you'd like to get rid of
- In the Available Credit dropdown, select the unapplied payment you wish to eliminate
- In the Refund Method dropdown, select "Cash"
- Add a comment for your internal notes that states that "this refund is to get rid of an incorrect credit on account"
- Uncheck the "Send a notification email" box, if you don't want to send the refund notification to the customer
