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How to Apply a Credit Memo as a Credit Card Refund in Epicor
Applied Credit Payments — Step-by-Step

Written by ERP Rescue consultants  ·  Epicor Kinetic & Classic  ·  Finance / Accounts Receivable

The Problem This Solves

A customer paid by credit card and needs a refund — full or partial. In Epicor, the correct way to issue a credit card refund is through Apply Credit Memo, but the process is counterintuitive: you use the Applied Credit Payments card (not Applied Invoices) and look up the original charge through Credit Card Transaction History. Skipping any step — or selecting the invoice instead — will result in the credit not posting correctly to the card.

⚠️ Before You Begin

The credit memo must already exist in the system before you start this process. When creating it, reference the original invoice number in the credit memo entry. If the credit memo hasn't been created yet, do that first and then return to this guide.

Interactive Walkthrough

Watch the steps animate automatically, or use Prev / Next to move at your own pace.

Epicor Kinetic — Accounts Receivable
Step 1 of 5

Step-by-Step Instructions

1

Create the Credit Memo First

Before starting this process, the credit memo must already exist in the system. When creating it, reference the original invoice number in the credit memo entry. This is what allows Epicor to link the refund back to the correct charge.

💡 If the credit memo is already created, proceed to Step 2.
2

Navigate to Apply Credit Memo

Go to Financial Management → Accounts Receivable → General Operations → Apply Credit Memo.

On the landing page, select the credit memo you want to apply.

3

Enter Apply Date and Amount, Then Save

In the Apply Credit Memo detail screen:

  1. Review the credit memo to confirm it's correct.
  2. Enter a date in the Transaction Apply Date field.
  3. Accept the default or enter a different amount in the Amount to Apply field.
  4. Click Save.
4

Go to Applied Credit Payments — Skip Applied Invoices

Do NOT select the original invoice. Skip the Applied Invoices card entirely. Applying the credit memo to the invoice instead of the credit card transaction will not issue the refund to the card.

Navigate directly to the Applied Credit Payments card and click the New icon to add a new line.

5

Look Up the Credit Card Transaction

On the new line, right-click in the Reference ID cell. A pop-up menu will appear. Select Credit Card Transaction History.

A slider window will open showing all credit card transactions for that customer. Select the transaction that corresponds to the original invoice number.

💡 The Applied Credit Payment card will populate automatically once you select the transaction. Click Save.
6

Apply the Credit Memo

Click the Apply Credit Memo button in the top-right corner of the screen.

Exit Apply Credit Memo. The credit card refund has now been issued in Epicor.

✅ Done. To confirm the refund was processed, navigate to your Merchant Services Portal and verify the credit appears on the customer's card.

Still Having Trouble?

Credit memo and credit card refund issues in Epicor AR — particularly when the refund doesn't appear in the Merchant Services Portal or the Applied Credit Payments card doesn't populate — are often caused by missing transaction links or payment method configuration. Our consultants can diagnose and resolve it quickly.

Talk to an Epicor Expert — Free Consultation

Article Details

MODULEFinancial Management → AR
EPICOR VERSIONSKinetic & Classic
DIFFICULTYIntermediate
TIME TO COMPLETE~5 minutes

⚠️ The Most Common Mistake

Selecting the original invoice in Applied Invoices instead of using Applied Credit Payments → Credit Card Transaction History. The refund will not go back to the card if you do this.

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