---
schema_version: "1"
id: 4202e8ba991c2da65fe794f6ffc396135c82c5bce6146fc9cec90f090674cc04
title: Set Up Credit Memo Features
collection: admin
version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/billing_setup_credit_memo_features_enable.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_setup_credit_memo_features_enable.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: 73526da25afec5a8de80b44580bde758e9fa9de6209659716a1700c1c0aeaa5d
description: 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.
products:
  - Revenue Cloud
release: "264"
---
# Set Up Credit Memo Features

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.

### 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>

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small permission">
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            <th scope="colgroup" class="slds-cell-wrap" colspan="2" style="text-align:center;vertical-align:top;" id="d213059e74">User Permissions Needed</th>
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            <td data-label="User Permissions Needed" class="slds-cell-wrap" style="vertical-align:top;" headers="d213059e74 ">To enable Billing features:</td>

            <td class="slds-cell-wrap" style="vertical-align:top;" headers="d213059e74 ">Billing Admin permission set</td>

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1. From Setup, in the Quick Find box, enter Billing, and then select **Billing Settings**.
2. To automatically convert all negative invoice lines to credit memo and credit memo lines after the related invoices are posted, turn on Conversion of Negative Invoice Lines to Credit Memo and Credit Memo Lines.
3. To automatically apply all converted credit memo and credit memo lines to the related invoice and invoice lines, turn on Application of Converted Credit Memo and Credit Memo Lines to Header Level and Line Level.
4. Select the credit application level. If your Salesforce org has the Revenue Management Billing license, the label of this setting is Credit, Refunds and Payment Application Level.
    - To apply credits to a specific line on invoices, select **Line Level**.
    - To apply credits to the total rolled-up balance of invoices, select **Header Level**.
5. To automatically apply available credit memo balances to posted invoices, turn on Apply Credits to Posted Invoices.
6. Select the default flow used to apply the credit memo to invoices.
7. Select the credit memo and payment application rules.
    
    See [Define Rules and Order to Apply Credit Memo and Payments](https://help.salesforce.com/s/articleView?id=ind.billing_setup_credit_memos_payments_application_rules.htm&release=264.0.0&type=5 "Define the rules and the order in which credit memos and payments are applied to settle the balances of posted invoices or invoice lines within the same account.").

After you set up credit memo features, your Credit Memo Operations users can [manage credit memos](https://help.salesforce.com/s/articleView?id=ind.billing_credit_memos.htm&release=264.0.0&type=5 "Create and apply credit memos to decrease the balance of invoices when the quantity or price of orders are amended.").

#### See Also

- [Automatic Conversion of Negative Invoice Lines into Credit Memo Lines](https://help.salesforce.com/s/articleView?id=ind.billing_setup_negative_invoice_lines_conversion_to_credit_memo_lines.htm&release=264.0.0&type=5 "In certain billing scenarios, an invoice line can be generated with a negative charge amount. This typically occurs when you amend an order to decrease the quantity of a product and generate an invoice for the amended product, or generate an invoice for an order product that has a negative price. Automate conversion of large volumes of such negative invoice lines to credit memo lines, and the application of these credit memo lines to invoices.")
- [Automatic Application of Credits to Settle Invoice Balances](https://help.salesforce.com/s/articleView?id=ind.billing_setup_apply_credits_to_posted_invoices.htm&release=264.0.0&type=5 "Eliminate the need to manually apply credit memos by automatically applying available credit memo balances to settle the balances of posted invoices.")
- [Results of Credit Memo Application](https://help.salesforce.com/s/articleView?id=ind.billing_credit_application_results.htm&release=264.0.0&type=5 "After posted invoices are generated, credits are applied based on the credit application level.")