Every store works hard trying to make their customers happy. However, sometimes it happens that people want their money back. In such cases, people request a refund which in Magento is called Credit Memo.

And in this article, you will learn what is it and how to create it.

Post Contents [hide]

    What is Credit Memo in Magento 2?

    Magento 2 Credit Memo is a document that defines how much money will be returned to the customer. How you create credit memos in Magento 2 generally depends on the payment method used while placing the order.

    Based on this there are 2 types of credit memos: Online and Offline.

    • Offline Credit Memo means the refund will be saved just in the Magento database and the funds won't be transferred to the bank, therefore no money will be actually returned. It is used in case the offline payment method (e.g. money and check) was used while placing an order.
    • Online Credit Memo is filed if your payment method module supports the IP bank communication. In this case, the payment method module contacts the bank, and a certain amount of money is charged from the merchant's account. Pay attention that not every payment method allows you to make an online credit memo.

    In this article, you will learn how to create credit memos in both cases. So, let's get to it!

    Create Credit Memo in Magento 2

    1. Navigate to Admin Panel > Sales > Orders and choose the order you are interested in from the Orders grid.

    Magento 2 Orders Grid

    2. Go to the Invoices section of the Order you want to create online credit memo for.

    Magento 2 invoices credit memo

    3. Click on the corresponding Invoice and press the Credit Memo button in order to create an online refund.

    Magento 2 invoice page

    In order to create a refund you have to fill in two fields: Items to Refund and Order Total.

    4. Set if you want Items to be Returned to Stock and their Quantity.

    5. Press Update Qty's button.

    Magento 2 credit memo items

    6. Enter the Refind Shipping, Adjustment Refund, and Fee.

    • Refund Shipping — the amount of money to be refunded from the shipping fee. (equals to the full order shipping amount)

    Note: except for the price, the shipping handling fee can vary for each method. Check out the shipping method configurations to learn more about it.

    • Adjustment Refund — additional refund that doesn't apply to any part of the order and is added to the total amount. (used as a partial refund with a gift card or virtual money)
    • Adjustment Fee — the amount subtracted from the total amount. (not subtracted from specific order section like items, tax or shipping)

    You can as well choose to send the Email Copy of the Credit Memo and leave some Comments.

    7. Press the Refund button once you filled out all of the fields.

    Magento 2 online credit memo

    Create Offline Credit Memo in Magento 2

    1. Navigate to Admin Panel > Sales > Orders and choose the order you are interested in from the Orders grid.

    Magento 2 Orders Grid

    2. Press the Credit Memo button in the Order Information section.

    Magento 2 order credit memo

    Note: if you use the latest versions, Magento asks you to confirm you want to create an offline refund. Press OK to continue with the offline credit memo.

    Magento 2 credit memo notification

    3. Fill in the same options as in the Online Refund (Items to Refund and Order Total) and press the Refund button.

    Magento 2 refund

    Stores that provide a refund option always seem more reliable and trustworthy. And since Magento allows you to create credit memos, you can easily do that from the admin panel now.

    But what happens with the orders that have been refunded or canceled?

    Magento doesn't allow you to delete any orders by default. So they are all stored in the order grid. However, if you want to know how to delete them, there is a solution — Magento 2 Better Order Grid extension.

    It allows you to delete orders in order grid or on the order detail page, but that's far from all it offers you. Check out Better Order Grid for Magento 2 and manage orders much faster!