Learn how to apply a credit memo by using the Apply Credit to Source Item rule in the UI.

1. Open the credit memo you want to apply.
2. Start the action to apply the credit memo to an invoice.
3. In the Application Rule field, select Apply Credit to Source Item.
4. Select the target invoice.
5. Complete the application.

   Zuora applies each eligible credit memo item and tax item to its matching invoice item or tax item.