*Please note, as of June 2026, this functionality is only supported for NetSuite customers. Additional ERPs are on the 2026 roadmap, and this article will be updated as support for them becomes available.
Applying a credit memo
In the Credit Memos workspace, open the credit memo's detail drawer and switch to the Applications tab. This tab shows the full application history for that credit memo — including applications made by your team in Tesorio and those submitted by your customer through the Customer Portal.
Select Apply Credit at the top of the tab.
The Apply Credit Memo dialog opens with the credit memo's customer pre-selected. Use the search bar to find invoices by invoice number, PO number, customer name, or other invoice text. The list only shows invoices for the credit memo's customer and in the credit memo's currency. Use the Selected only pill to pin the list to just the invoices you've already selected.
Set the amount to apply to each invoice. Each selected invoice has its own amount field, which defaults to the smaller of the invoice's available balance or the remaining credit. Tesorio validates each row, so you can't apply more than the invoice's available balance or more than the credit's unapplied amount.
Review the running Applying and Remaining totals, which update live as you adjust amounts.
Select Apply.
The dialog briefly displays a "Submitted "confirmation and closes. The application continues in the background.
How you'll know it worked
Applications are asynchronous — Tesorio submits the application to NetSuite and notifies you when it's done (usually within a few seconds):
A toast notification appears in the bottom-left: "Applying credit memo #… — this can take a few seconds; we'll notify you when it's done."
When NetSuite confirms, the toast updates to a success, partial success, or failure message. Clicking the toast opens the credit memo's Applications tab so you can review the details.
The Credit Memos table refreshes automatically, so the credit memo's Applied, Unapplied, and Status values update without a manual page refresh.
You can apply multiple credit memos to multiple invoices in a single submission, and you control exactly how much of each credit goes to each invoice — Tesorio never auto-splits amounts for you.
While an application is in flight, the affected invoices show a reduced available balance, so another teammate can't accidentally apply the same credit twice.
Please note that applying multiple credit memos to a single invoice, or a single credit memo to multiple invoices, increases processing time.
Unapplying a credit memo
Unapplying is available wherever an applied credit memo is shown against an invoice — for example, in the credit memo drawer's per-invoice list, or in the invoice drawer's credit memo list.
Select Unapply next to the application you want to reverse.
Confirm the prompt, which shows the credit memo number, the invoice, and the amount being unapplied.
The unapply is submitted in the background, and the same toast notification reports the outcome.
Once complete:
The application is removed in NetSuite, and the invoice balance is reopened by the unapplied amount.
The credit memo's Applied, Unapplied, and Status values restore accordingly.
The original application record is not deleted — it remains in the Applications tab as history, and the unapply creates its own audit record (action = Unapply).
If the application was already removed directly in NetSuite (for example, a teammate unapplied it there manually), running Unapply in Tesorio simply cleans up Tesorio's records so everything stays in sync.
A video attached to this article displays a successful unapplication of a Credit Memo previously applied to an invoice.
Note: Unapplying is available only from the Tesorio dashboard. Customers cannot unapply credits from the Customer Portal.
Statuses
Credit memo status (shown as a badge on the credit memo):
Posted — the credit memo has no applications yet
Partially Applied — some unapplied balance remains
Applied — fully applied; no unapplied balance left
Voided — the credit memo has been voided
Application status (shown in the Applications tab):
Pending — submitted and queued
Processing — being applied in NetSuite right now
Completed — all lines succeeded
Partially Failed — at least one line succeeded, and at least one failed
Failed — no lines succeeded
For partial or failed applications, the application detail view shows each line with its specific NetSuite error so you can act on it.
When an "apply" is blocked
Tesorio enforces NetSuite's rules before submitting and shows a specific message when something is blocked. An application will be blocked when:
The credit memo is voided or already fully applied.
The credit memo's unapplied balance is less than the amount requested.
The invoice is not open — paid, closed, or voided invoices can't receive credits.
The currencies don't match between the credit memo and the invoice.
The credit memo and invoice are on different subsidiaries (when both have one).
The credit memo and invoice are on different AR accounts (when both have one).
The credit memo and invoice belong to different customer records. Applying a parent customer's credit memo to a sub-customer's invoice is not currently supported in Tesorio, even when NetSuite's "Allow Consolidated Payments" permits it. Parent/child support is on the roadmap.
The credit memo's NetSuite posting period is fully closed (and not flagged "allow non-GL changes"). Either re-date the credit memo to an open period, or have an accountant reopen the period in NetSuite.
An application for the same credit memo is already in flight (Pending or Processing). Wait for it to finish, then try again.
The total requested for an invoice across all selected credit memos exceeds the invoice's available balance.
NetSuite reports no eligible invoices for the credit memo. This usually means the integration's NetSuite role is missing "Override Period Restrictions" or there's a location, department, class, or customer hierarchy restriction in NetSuite. The error message includes the exact steps to fix it.
Please note: applying full permissions within the Tesorio bundle for both Credit Memos & "Override Period Restrictions" allows Credit Memos to be applied from accounting periods that are currently locked.
When an unapply is blocked
The company isn't on the NetSuite integration.
The application record can't be found or doesn't belong to this customer.
An application for the same credit memo is already in flight (the same Pending/Processing guard as apply).
NetSuite refuses the change at execution time (for example, a closed period) — this is surfaced in the toast notification.
How this relates to the Customer Portal
The Applications tab in Tesorio shows everything — applications made by your team and applications submitted by customers through the portal.
The customer's portal Applications tab shows only their own portal activity. Applications your team makes in Tesorio won't appear in the customer's Applications list, but the customer will see the updated Applied/Unapplied balances and status on their Credit Memos tab.
Customers can apply eligible credits through the portal (if enabled for the subsidiary), but cannot unapply them — unapply is dashboard-only.