Accounts Payable → Credit Memos

Manage credits between
retailers and vendors

Credit memos are built into the ShelfSpace AP engine. Issue, track, and resolve credit memos with full transparency. ShelfSpace gives both sides a clear view of every credit — from issuance to settlement.

A formal record of
credits owed

Credit memos are issued when a retailer needs to credit a vendor — or vice versa. They cover returns, pricing corrections, promotional adjustments, and other special circumstances. Without a system, these credits get lost in email threads and spreadsheets.

ShelfSpace centralizes credit memo management so both parties have a single source of truth. Every credit is tracked from issuance through resolution, with a complete audit trail.

Retailer
Issues Credit
Record
Credit Memo
ShelfSpace Tracks
Credit Memo
Full audit trail from issuance to resolution
Applied To
Next Settlement
Status
Resolved
Credit memos are a built-in feature of ShelfSpace Accounts Payable. Every AP customer gets credit memo management included.
01
Initiation

Issue a Credit Memo

Either party can issue a credit memo through the ShelfSpace platform. Specify the amount, reason, and any supporting details. The other party is notified immediately.

Structured issuance: Every credit memo includes a reason code, amount, and reference — no ambiguity.
02
Verification

Review & Approval

The receiving party reviews the credit memo and can approve, dispute, or request modifications. All communication is tracked within the platform.

Built-in review workflow: No back-and-forth emails — everything happens in one place with a clear audit trail.
03
Resolution

Apply or Settle

Approved credit memos can be applied to the next settlement, offset against future payments, or settled independently. ShelfSpace tracks the balance automatically.

Flexible resolution: Apply credits to settlements, offset payments, or settle independently — whatever works for both parties.
04
Compliance

Audit Trail

Every credit memo action is logged — issuance, review, approval, application, and settlement. Both parties have full visibility into the history and current status.

Complete traceability: Every action is timestamped and attributed, giving both sides confidence in the process.

When credit memos
come into play

From returns to special circumstances — credit memos handle every scenario where credits need to be issued, tracked, and resolved.

Returns

Product returns, defective items, or quality issues that require a credit back to the vendor or retailer.

  • Defective product credits
  • Quality issue adjustments
  • Expired product returns
  • Damaged goods claims

Pricing Corrections

Adjust credits when pricing errors occur — wrong cost entered, incorrect split applied, or retroactive price changes.

  • Cost entry corrections
  • Split adjustments
  • Retroactive price changes
  • Invoice discrepancies

Promotional Adjustments

Manage credits related to promotional programs — vendor-funded discounts, co-op marketing, and promotional overruns.

  • Vendor-funded promo credits
  • Co-op marketing settlements
  • Promotional budget overruns
  • Discount reconciliation

Special Circumstances

Handle one-off situations that don't fit standard categories — goodwill credits, contract amendments, and negotiated adjustments.

  • Goodwill credits
  • Contract amendments
  • Negotiated adjustments
  • Custom arrangements

Ready to bring clarity to
credit management?

Credit memo management is included with ShelfSpace AP. Join the pilot and get the full payment engine — consignment, wholesale, and credit memos.