Credit memo vs refund?

Memo adjusts the invoice; refund is cash movement—often paired.

Usually reverse tax lines consistent with the original invoice.

Yes—line-level or proportional depending on policy.

Credit memo

A credit memo (credit note) is a document that decreases receivables—often for returns, pricing errors, or service shortfalls.

Reference invoice numbers and line items you are reversing or adjusting. Partial credits are common.

Reverse tax consistently with the original taxable base to stay audit-safe.

Credits are clearer than editing old PDFs—preserve audit trails.

Credit memo vs refund?: Memo adjusts the invoice; refund is cash movement—often paired.
Tax on credits?: Usually reverse tax lines consistent with the original invoice.
Partial credit?: Yes—line-level or proportional depending on policy.