A credit memo records an amount you owe back to a customer, or take off their balance, because of a return, a short or damaged delivery, a pricing error or a goodwill gesture. It can be applied to an open invoice or held on account.
Credit memos are where service recovery meets margin. Each one should carry a reason, so that you can tell a damaged-in-transit problem from a customer who returns product every week.
In APFoodz every credit carries a reason and can require approval.