How to Create a Credit Memo in Google Sheets: A Step-by-Step Guide

Learn how to create a credit memo using Google Sheets with this comprehensive step-by-step tutorial. Perfect for managing client accounts and ensuring excellent customer service.

30 May 2025 By Jared Hood

In this guide, we'll learn how to create a credit memo using Google Sheets. A credit memo is a document issued to a client to reduce the amount they owe, often due to returned goods or service issues. We'll start by making a copy of a credit memo template in Google Sheets, ensuring we don't alter the original. Then, we'll customize the document with project-specific details, such as client information and the reason for the credit. Finally, we'll adjust the financial entries to reflect the credit amount and save the document as a PDF for record-keeping.

Let's get started

Go to Credit Memo Template.xlsx - Google Sheets

Step #2: Click on "File" — Click on "File"

Click on "Make a Copy." Next, rename the copy to match the project name.

Step #3: Click on "Make a Copy" — Click on "Make a Copy"

Step #4: rename the copy — rename the copy

We will use this credit for the Brown project so we'll rename it "Brown Credit Memo". After retitling, click "Make a Copy." Close the credit memo template.

Step #5: Click "Make a Copy" — Click "Make a Copy"

Go to the Brown Credit Memo we just created. This template is the same one we use for estimates, service calls, and purchase orders. It's the same template for many things. We need to fill in some of these areas and we won't need to fill out other areas.

First, we need to change this from an estimate to a credit memo. Go to where it says "Estimate," click the dropdown box, and select "Credit."

Step #7: Click on "Credit" — Click on "Credit"

You can see here that this is now properly labeled "Credit"

Step #9: Update the date on the form — Update the date on the form

Step #10: Click on "CABINETRY DESIGN" — Click on "CABINETRY DESIGN"

Step #11: Enter the client information - name, address, phone number & email address — Enter the client information - name, address, phone number & email address

This is for Tom Brown project. Enter their address, phone number, and email. That is all the information we need for the credit details. We don't require anything else for the top portion of the credit memo.

If this were an estimate or purchase order, we would complete all the designer and cabinetry details, as well as the project information. For a credit memo, we can leave all of that blank. We now go to the line where it says Description, ensure it says "credit," and then provide the reason for the credit.

Step #13: Enter the reason for the credit — Enter the reason for the credit

There are various reasons we credit an account. There might be an item they were charged for but did not receive. We need to ensure they are not charged for that. That's one reason we provide credit.

Another reason we offer a credit is if something occurred during the installation process that made their experience less than desirable. If Southwest Kitchen and Bath did something that made their experience less than perfect, we want to be accountable for it. This is one way we can do that.

There are various reasons, but those are two of the main ones for issuing credit memos. In this case, I will enter customer service credit in the description. We move to the unit price and ensure we place a minus sign in front of it. We'll say $500, and you can see it places that amount in parentheses. This indicates to our bookkeeper that it's $500 off their balance, not added to it.

Step #14: place a minus sign in front of the credit amount. If the amount shows in parenthesis then our bookkeeper will know to deduct this from the client's balance — place a minus sign in front of the credit amount. If the amount shows in parenthesis then our bookkeeper will know to deduct this from the client's balance

If the spreadsheet doesn't automatically fill in this information, ensure that we fill it in manually. After entering the credit amount, return to the top.

Step #15: Enter the credit amount in all the applicable areas — Enter the credit amount in all the applicable areas

Go to File and select Print.

I like to create a PDF copy by using Print to PDF. This allows you to print the PDF, place it in their file, and also send it to the bookkeeper's inbox. Simply go to Print and select it to print from there.

Once it's printed and placed in the bookkeeper's inbox, we're finished.

That's all there is to it.