Managing balance application preferences
Use Balance application preferences to configure how your unapplied credit memos are automatically applied to outstanding invoices. You can access these settings from the Payment preferences page in the AWS Billing and Cost Management console.
By default, credit memos are applied to the original invoice first, then to future invoices. You can change this preference at any time to match your organization's internal payment processes.
Prerequisites
Balance application preferences are available to AWS accounts that meet the following criteria:
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The account pays through electronic funds transfer (EFT)
Note
This feature is not available to accounts that pay by credit card or similar payment methods. If you don't see the Balance application preferences tab, your account might not be eligible due to other account restrictions.
Before balance application preferences were available, AWS defaulted to applying credit memos to the original invoice only. When a credit memo is applied to an invoice, you still receive a complete credit memo and invoice for each application.
Understanding credit memo application preferences
When AWS issues a credit memo for your account, the credit memo can be applied to outstanding invoices automatically based on your selected preference. The following table describes the available options.
| Preference | Description |
|---|---|
| Apply to original invoice first, then future invoices (Recommended – current default) | The credit memo is applied to the invoice it was issued against, if the invoice is still open. Any remaining or unapplied amount is applied to the next eligible future invoices as they are issued. |
| Apply to original invoice first, then oldest invoices | The credit memo is applied to the invoice it was issued against, if the invoice is still open. Any remaining or unapplied amount is applied to your oldest outstanding invoices. |
| Apply to original invoice only (Previous default) | The credit memo is applied to the invoice it was issued against, if the invoice is still open. If the invoice is no longer open, the credit memo remains unapplied. Prior to the additional preferences, the default behavior was to apply the credit memo to the original invoice if it is open. |
| Apply to future invoices | The credit memo is held and applied to the next eligible future invoices as they are issued. |
| Apply to oldest invoices | The credit memo is applied to your oldest outstanding invoices. |
Important
Credit memo application preferences apply to credit memos only. They do not affect AWS promotional credits. For information about promotional credits, see Applying AWS credits.
Additionally, credit memos issued for AWS Marketplace purchases must be applied to the original invoice and cannot be redirected to other invoices. Credit memos can only be applied to invoices belonging to the same seller of record and currency as the credit memo.
Changing your credit memo application preference
To change your credit memo application preference
Open the AWS Billing and Cost Management console at https://console.aws.amazon.com/costmanagement/
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In the navigation pane, choose Payment preferences.
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Choose the Balance application preferences tab.
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Under Credit memo application strategy, select your preferred application method.
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Choose Save preferences.
Your updated preference takes effect immediately and applies to all future credit memo applications. Credit memos that have already been applied are not affected by preference changes.
Viewing credit memo application history
After a credit memo is applied, AWS sends an email notification to the account's billing contacts (root contact, alternate billing contact, and additional billing contacts) with details about the application, including:
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The credit memo number and total application amount
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The invoices the credit memo was applied to
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The remaining credit memo balance (if partially applied)
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A link to view your invoices and any remaining unapplied credit memos
To view your current unapplied credit memos, see View remaining invoices, unapplied funds, and payment history.
How credit memos are applied
When a credit memo is applied based on your preference:
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Full application – If the credit memo amount is less than or equal to the target invoice balance, the entire credit memo is applied.
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Partial application – If the credit memo amount exceeds a single invoice balance, the credit memo is applied to that invoice first. The remaining amount is applied to additional invoices based on your preference (future or oldest).
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Multiple invoices – If your preference involves multiple invoices (for example, oldest invoices), the credit memo is applied starting with the oldest invoice until the credit memo is fully consumed.
Note
If you select "Apply to original invoice only" and the original invoice is already closed, the credit memo remains unapplied in your account. You can view unapplied credit memos on the Unapplied funds tab of the Payments page.
