Pay by Invoice Update: Day 1 Credit Memo Offset

Amazon Business customers can now simplify credit memo application.
Release Date: 13 December 2023
Last Updated: 13 December 2023

This update with the Pay by Invoice is only available in the US and Canada.

  • What is Day 1 Credit Memo Offset?
    Day 1 Credit Memo Offset is a new feature for Amazon Business customers that simplifies credit memo application. Credit memos are generated when customers return an item or request a refund. Without Day 1, customers must provide Amazon Business with instructions on how to apply that credit memo. If they activate Day 1, all future credit memos are automatically applied to their original invoice, if that invoice is still open. If the original invoice is closed, the credit memo remains open until Amazon Business receives specific instructions on how to apply it. If customers choose to enroll, they need to update their AP processes to prevent any reconciliation issues. This feature only impacts future credit memos. For the existing credit memos, customers need to provide application instructions.

  • How does it work?
    When a Credit Memo is issued, it will automatically be applied to the associated invoice. The Credit memo will show as closed and the invoice will be reduced by the amount of the credit memo. If the Invoice balance is the same as the Credit memo’s, then the invoice will also be closed out.

  • What are the customer benefits?
    Customers would no longer need to request to have their credit memos applied to an invoice. As long as the invoice is still open, the credit memo will automatically be applied.

  • Where are we launching?
    In the US and Canada Pay by Invoice customers only.