At a Glance
- Credit memo approval in cannabis follows a five-status workflow: Draft, Pending Vendor Response, In Discussion, Applied, Voided
- Vendors reply Approved, or Let's discuss — silence does not approve a credit memo
- ShelfSpace follows up with the vendor every few business days until they answer
- "Let's discuss" replies escalate to a human conversation between the retailer's escalation contact and the vendor
- Both parties receive email and in-app notifications at every status change
- Applied credits are deducted from the next payment or settlement
How Credit Memo Approval Works in Cannabis
The credit memo approval process in cannabis determines how a credit moves from initial creation to final application against a vendor payment. ShelfSpace manages this workflow end to end, notifying both parties at each step and following up actively until the vendor responds. Every credit memo follows the same path, whether it originates from a return, expiration, or co-marketing deal.
Our credit recovery platform eliminates the back-and-forth that usually happens over email and phone. Vendors respond through their portal or by email reply, and the entire conversation is recorded in the credit memo's event log.
The Five Credit Memo Statuses
- Draft — The credit memo has been created but not yet sent to the vendor. You can edit line items, attach supporting documents, and adjust the amount. Nothing is visible to the vendor at this stage.
- Pending Vendor Response — The memo has been submitted and the vendor has been notified. The vendor sees the full memo in their portal and receives an email with the amount and reference number. ShelfSpace follows up every few business days until the vendor replies.
- In Discussion — The vendor has replied "Let's discuss" or counter-proposed a different amount. ShelfiQ steps out and the conversation is owned by humans — the retailer's escalation contact and the vendor team. When both sides agree, an admin finalizes the credit at the agreed amount or voids it.
- Applied — The credit has been approved (by the vendor, or by mutual agreement on a counter-proposal). The amount is queued for deduction on the vendor's next outgoing payment.
- Voided — The credit memo has been cancelled. Either party can void a memo before it reaches Applied status. A voided memo cannot be reactivated.
The Vendor Response Cadence
When a credit memo moves to Pending Vendor Response, the vendor receives the memo by email and in their portal. ShelfSpace then follows up every few business days — by reminder email, in-app notification, and through ShelfiQ when the vendor emails about a related invoice payment. There is no automatic deadline; credit memos do not approve on silence.
If a credit memo sits open for an extended period without a response, the platform escalates it to retailer admins so a human can decide whether to keep waiting, void the memo, or finalize through manual approval. This backstop prevents credits from sitting in indefinite limbo without ever forcing an outcome the vendor didn't agree to.
How Counter-Proposals Work
Instead of accepting outright, a vendor can counter-propose a different amount or open a "Let's discuss" thread. For example, if you submit a $500 credit for returned product and the vendor believes only $400 is justified, they can propose $400 with an explanation. The credit memo flips to In Discussion and a kickoff email goes to the retailer's escalation contact.
While In Discussion, ShelfiQ steps out and humans take over the conversation. When both sides agree, an admin uses the retailer's monthly statement page to finalize:
- Approve at the agreed amount — The credit moves to Applied at the negotiated number.
- Void the memo — The credit is cancelled and no deduction occurs. Use this when the dispute reveals the credit doesn't apply.
Notifications at Every Step
Both the retailer and vendor receive notifications throughout the process. Emails are sent when a memo is created, when the vendor responds, when a counter-proposal is submitted, when a credit is approved or voided, and on every reminder cycle until the vendor replies. In-app notifications appear in each party's portal dashboard. See responding to credits for the vendor's perspective.