When Google needs to update your account balance, you receive adjustments. Adjustments come in the form of credit and debit memos. Either will reduce your account balance or create more invoices that you must pay.
If your account is set to monthly invoicing, you might also receive memos. Memos are statements that Search Ads 360 issues to an account after an adjustment.
- Credit memos can apply to existing invoices and reduce the amount that you need to pay. Credits can also remain on your account as unapplied. Payments not yet applied or credits will appear above your invoices. You can apply credits to eligible invoices as you wish.
- Debit memos can apply to existing invoices and increase the amount that you need to pay. Debit memos act as other invoices that you must also pay.
Memos issued in a particular month can differ from the month in which it applies to an invoice. Memos can apply to a previous, current or future invoice. For example, a credit memo issued in April can document an adjustment applied in March. Similarly, a credit memo issued in May can document a credit adjustment to apply to June's invoice.
When you apply a credit memo to an invoice, the invoice shows the credit memo amount as an amount paid. The outstanding balance owed on the invoice is then reduced.