---
schema_version: "1"
id: c5b6eb0f6c4e9a32535490f713c9a5858c16cdc499995c8edf9eaf03d9af5dd4
title: Results of Credit Memo Application
collection: admin
version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/billing_credit_application_results.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_credit_application_results.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: 8b3b61ec7d5455f790e7950081ee32ef989d3fc01433d9e0af3af5dc09815441
description: After posted invoices are generated, credits are applied based on the credit application level.
products:
  - Revenue Cloud
release: "264"
---
# Results of Credit Memo Application

After posted invoices are generated, credits are applied based on the credit application level.

### Required Editions

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small edition"><colgroup><col></colgroup><tbody><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: Lightning Experience</td></tr><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: <strong>Enterprise</strong>, <strong>Unlimited</strong>, and <strong>Developer</strong> Editions with <a href="https://help.salesforce.com/s/articleView?id=ind.revenue_licenses_areas_and_features.htm&amp;release=264.0.0&amp;type=5">the Revenue Cloud Advanced license or the Revenue Cloud Billing license</a></td></tr></tbody></table>

Applying a credit memo or credit memo line reduces the balance of an invoice or an invoice line. For example, applying a $100 credit memo line to a $500 invoice line reduces the invoice line’s balance to $400.

After the credits are applied, the balance amounts and applied credit amounts are automatically updated as shown in this table.

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small ">
      <colgroup>
        <col style="width:25%">
        <col style="width:25%">
        <col style="width:25%">
        <col style="width:25%">
      </colgroup>
      <thead class="slds-text-title_caps ">
        <tr class="">
          <th scope="col" class="slds-cell-wrap" style="vertical-align:top;" id="d175028e80">Credit Application Level</th>
          <th scope="col" class="slds-cell-wrap" style="vertical-align:top;" id="d175028e83">Updated Credit Fields</th>
          <th scope="col" class="slds-cell-wrap" style="vertical-align:top;" id="d175028e86">Updated Invoice Fields</th>
          <th scope="col" class="slds-cell-wrap" style="vertical-align:top;" id="d175028e89">New Record</th>
        </tr>
      </thead>
      <tbody>
        <tr class="">
          <td data-label="Credit Application Level" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e80 ">Invoice</td>

          <td data-label="Updated Credit Fields" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e83 ">
            <p>Credit Memo fields:</p>
            <ul>
              <li>Net Credits Applied</li>

              <li>Settlement Level is Top Level</li>

            </ul>
          </td>

          <td data-label="Updated Invoice Fields" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e86 ">
            <p>Invoice fields:</p>
            <ul>
              <li>Balance</li>

              <li>Net Credits Applied</li>

              <li>Settlement Level is Invoice</li>

            </ul>
          </td>

          <td data-label="New Record" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e89 ">Credit Memo Invoice Application record</td>

        </tr>
        <tr class="">
          <td data-label="Credit Application Level" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e80 ">Invoice Line</td>

          <td data-label="Updated Credit Fields" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e83 ">
            <p>Credit Memo Line fields:</p>
            <ul>
              <li>Line Amount</li>

              <li>Net Credits Applied</li>

            </ul>
            <p>Credit Memo fields:</p>
            <ul>
              <li>Net Credits Applied</li>

              <li> Settlement Level is Line Level</li>

            </ul>
          </td>

          <td data-label="Updated Invoice Fields" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e86 ">
            <p>Invoice Line fields:</p>
            <ul>
              <li>Line Amount</li>

              <li>Net Credits Applied</li>

            </ul>
            <p>Invoice fields: </p>
            <ul>
              <li>Balance</li>

              <li>Net Credits Applied</li>

              <li>Settlement Level is Invoice Line</li>

            </ul>
          </td>

          <td data-label="New Record" class="slds-cell-wrap" style="vertical-align:top;" headers="d175028e89 ">Credit Memo Line Invoice Line record</td>

        </tr>
      </tbody>
    </table>

#### See Also

- [Credit Application Level](https://help.salesforce.com/s/articleView?id=ind.billing_setup_credit_memo_features_enable.htm&release=264.0.0&type=5 "Set up Billing to automatically create credit memos from negative invoice lines and apply them to settle outstanding invoice balances, and to configure whether credits apply to invoices or invoice lines.")