Lido extracts amounts and references from credit notes and debit memos, matches them to original invoices, and produces a net adjustment spreadsheet.
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Lido processes credit memos alongside invoices so adjustments are always matched and netted.
Vendors issue credits for returns, billing errors, discounts, and adjustments. They arrive by email as PDFs. Lido classifies each as a credit note or debit memo and applies the right extraction schema.
From each credit memo: vendor name, credit number, date, original invoice reference, line items credited, total credit amount, and reason code (return, price adjustment, duplicate payment, discount).
Lido looks up the original invoice in your AP ledger and links the credit memo automatically. Fuzzy matching handles format differences like "INV-2026-0441" vs "Invoice #0441."
Credits referencing invoices not in your ledger are flagged. AP can manually link, request vendor clarification, or apply against a future invoice. Nothing falls through.
A structured spreadsheet shows each vendor's open invoices, credits applied, net payable, and adjustment reasons. Payment runs use net amounts. Month-end close uses the same data.
Upload a batch and get structured output in minutes.
Credits for returned merchandise, overbilling corrections, and contract adjustments. Any credit note format from any vendor.
Internal debit memos and vendor debit notes for additional charges, freight adjustments, and retroactive price changes.
Credits issued for 2/10 net 30 early payment discounts. Linked to the invoice for net payment calculation.
Credits after goods return. Lido extracts RMA number, returned items, quantities, and credited amounts.
Credits correcting an overcharge on a prior invoice. Original and corrected amounts extracted alongside the credit.
Credits acknowledging duplicate payment receipt. Lido flags and links to both original and duplicate payment records.
| Feature | Lido | Manual process |
|---|---|---|
| Extract credit memo fields from any vendor format automatically | ✓ | ✗ |
| Match credit memos to original invoices by reference number | ✓ | ✗ |
| Flag unmatched credits for review instead of dropping them | ✓ | ✗ |
| Calculate net payable per vendor for payment run | ✓ | ✗ |
| Track open credit balances against future invoices | ✓ | ✗ |
| Open the PDF and manually update the spreadsheet | ✗ | ✓ |
Process credit memos in the same workflow as invoices so nothing falls through the cracks at month-end.
A manufacturer returns defective components to three suppliers per month on average. Credit notes arrive 2–4 weeks after the return. Lido matches each credit to the original purchase order and invoice, netting the adjustment before the supplier's next payment run.
Distributors receive promotional credits from suppliers, volume rebates, co-op advertising credits, and new product launch allowances. Lido extracts each credit, links it to the vendor account, and includes it in the net payment calculation.
When a client disputes a line item, the firm issues an internal debit memo reducing the receivable. Lido extracts the adjustment, links it to the original invoice, and produces an updated net receivable for the account.
Intercompany transactions generate credits when one entity overbills another. Lido processes intercompany credit memos and matches them to the original intercompany invoices, producing a net intercompany balance for elimination at consolidated close.
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