# Credit Memo

Not everything goes perfectly when receiving your Purchase Orders and Sellercloud has you covered with our Credit Memo tools.

1. To create a **Credit Memo** for a **Purchase Order**, we’ll start by opening the desired POs detailed page by finding it on the “ **Manage POs**” page or searching for it in the universal search bar.

2. Once on the detailed page of the PO, we’ll go over to our “ **Actions**” button and select “ **Create Related Credit Memo**” from the drop-down menu.

3. This will create a related Credit Memo in Sellercloud, which you can jump to by clicking the “ **Credit Memo ID**” at the top of the screen.

4. Now that you’re in the **Credit Memo**, you can ship your Credit Memo back to the Vendor by going to your “ **Actions**” button and selecting “ **Ship Credit Memo**.”
   
   - Type in the “ **QTY TO SHIP**,” select the warehouse you are shipping from, add an optional “ **Receive Invoice#**” or “ **Vendor Order ID**,” and click the green “ **Ship Items**” button to ship your Credit Memo.

5. After you have shipped the **Credit Memo**, you can generate a Credit Memo Invoice to be sent to your Vendor for a refund. Go to the “ **Actions**” button and select “ **Manage Invoices**.”

6. You’ll go through the same steps to “ **Add New Invoice**” as before, but instead select the Invoice Type “ **CreditMemo**” before clicking “ **Add Invoice**.”

7. In the Credit Memo’s detailed page, you can click the “ **Edit**” button and link the “ **Shipping Session**” to the Credit Memo by clicking the green “ **\+ icon**” on the “ **Existing Sessions**” window and selecting the desired “ **Shipping Session**.”

8. Once the Vendor has sent back the refund, you can apply the refund to the Credit Memo by going into the Credit Memo’s detailed page and selecting “ **Apply Payment**” from the “ **Actions**” button dropdown.