Credit Memo/Notes Box- What It Is and When It's Required

Modified on Fri, Mar 6 at 3:02 PM

When you reverse a transaction, issue a refund, or record certain non-card payments in DealerWorks, a field labeled Reason, Credit Memo, or Notes will appear — and in many cases it will be marked as mandatory. This article explains what that field actually is, what to type in it, and what your dealership may require you to include.

The most important thing to know

The Credit Memo field is a plain-text notes field. It does not pull a number from your DMS, generate a document, or link to anything outside of DealerWorks. You type a short reason or reference directly into the field. That's it.

What the Credit Memo Field Is

Despite the name, the Credit Memo field has nothing to do with a formal credit memo document. It's a free-text field where you record why an action is being taken. The text you enter is saved with the transaction record and is visible in reporting — so accounting staff, managers, and auditors can see the reason without having to ask.

Think of it as a mandatory note. DealerWorks uses the label "Credit Memo" in some places and "Notes" in others — both refer to the same kind of field.

Where This Field Appears

The Credit Memo or Reason field appears in different parts of DealerWorks depending on what action you're taking:

Where you see it	Field label in DealerWorks	Required?
Reverse Transaction (void or refund)	Reason (Credit Memo) / Credit Memo #	Varies by dealership
Cash/Check payment	Note / Reference	Varies by dealership
Split Transactions/ Delaying Payment	Note / Reference	Varies by dealership
Other non-card payment methods (ACH, money order, etc.)	Note / Reference	Varies by dealership

On refunds and reversals: mandatory means the button won't work without it

The system label reads: "Credit Memo is mandatory for all refund or reverse transactions." If the field is empty, DealerWorks will not allow you to complete the action. You must enter something before clicking Refund Transaction.

What to Type in the Field

There is no required format, no specific length, and no lookup. You type a short plain-text reason. The goal is to give anyone reading the transaction record later — an accounting team member, a manager, an auditor — a clear, immediate explanation of why the action was taken.

Your dealership may have its own guidelines about what to include. If your manager or accounting team has given you specific instructions, follow those. Common approaches include:

Refund or void — wrong amount charged

Example entries:

Wrong amount charged — correcting to $412.00
Overcharge on RO 84201 — customer refunded difference
Incorrect total posted — voided and reprocessed

Refund or void — wrong repair order

Example entries:

Payment posted to wrong RO — voided and reapplied to RO 84198
Wrong invoice selected — reversed and reprocessed correctly

Refund — customer return or service correction

Example entries:

Part returned — customer refund approved by manager J. Smith
Service dispute resolved — partial refund per service manager
Customer refund — warranty coverage applied post-payment

Refund — duplicate charge

Example entries:

Duplicate charge — customer charged twice on 3/5/26, refunding second charge
Terminal error caused duplicate — second transaction reversed

Check or cash payment — note field

Example entries (check number is strongly recommended for reconciliation):

Chk #4421
Cashier's check #1092 — customer copy retained
Cash payment —2x $20's, 4x $1's

Your Dealership's Guidelines Take Priority

DealerWorks does not enforce a specific format or content requirement beyond requiring that the field isn't empty (for refunds and reversals). What you type is up to you and your dealership's policy.

Different stores use the field differently. Some require an approving manager's name. Some require a specific reference number from the DMS. Some require a date. If your accounting team or manager has given you instructions about what to include, those instructions are your guide — not this article.

If you're not sure what your dealership requires

Ask your manager or accounting team before processing the refund. A good entry takes five seconds — a vague or missing entry can create a reconciliation question weeks later that takes much longer to resolve.

Common Questions

Does the Credit Memo number come from our DMS?

No. The field does not connect to your DMS. You type directly into it. If your dealership uses actual DMS credit memo numbers and wants them recorded here, your manager will tell you — but DealerWorks doesn't pull or validate that number automatically.

Does what I type here appear on the customer's receipt or statement?

No. The Credit Memo field is an internal record. It is visible in DealerWorks reporting and transaction history but is not shared with the customer.

Can I go back and edit the entry after the refund is processed?

No. Once a refund or void is submitted, the Credit Memo entry becomes part of a permanent transaction record and cannot be changed. Enter something accurate and descriptive the first time.

What if I'm doing a partial refund — do I note the partial amount?

It's good practice to include the refund amount in your reason, especially for partial refunds, so the record is self-explanatory. For example: Partial refund $75.00 — labor charge disputed, approved by service manager.

The field isn't appearing — where is it?

The Credit Memo field appears inside the Reverse Transaction modal after you click Reverse Transaction from the transaction's action menu. It is listed beneath the Reverse Amount field. If you don't see the modal at all, confirm you have the refund permission — this action is restricted to certain roles.