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Credit Memo Approval Process for Cannabis Vendors

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Credit Recovery

At a Glance

  • Credit memo approval in cannabis follows a five-status workflow: Draft, Pending Vendor Response, In Discussion, Applied, Voided
  • Vendors get 10 business days to reply Approved, propose an adjustment, or open a discussion, with reminders before the deadline
  • On silence past the window, the documented credits (returns, destruction, and pre-approved promos) can be deemed approved and applied; co-marketing the vendor never pre-approved still needs an explicit yes
  • "Let's discuss" replies escalate to a human conversation between the retailer's escalation contact and the vendor
  • Vendors keep 60 days to dispute a credit after it's applied, including one that was deemed approved
  • Both parties receive email and in-app notifications at every status change
  • Applied credits are deducted from the next payment or settlement

How Credit Memo Approval Works in Cannabis

The credit memo approval process in cannabis determines how a credit moves from initial creation to final application against a vendor payment. The platform manages this workflow, notifying both parties at each step and following up through the vendor's review window. Every credit memo follows the same path, whether it originates from a return, expiration, or co-marketing deal.

Our credit recovery platform eliminates the back-and-forth that usually happens over email and phone. Vendors respond through their portal or by email reply, and the entire conversation is recorded in the credit memo's event log.

The Five Credit Memo Statuses

What the platform handles: notifications at every status change, ShelfiQ follow-up with the vendor on a regular cadence, and applying approved credits to the next payment. What your team handles: when a vendor counters or asks for a line-by-line negotiation, the thread routes to your AP person or buyer. You don't need to chase routine vendors manually, but the judgment calls stay with you.

The Vendor Response Cadence

When a credit memo moves to Pending Vendor Response, the vendor receives the memo by email and in their portal and has 10 business days to approve it, propose an adjustment, or open a discussion. The platform follows up before the deadline — by reminder email, in-app notification, and through ShelfiQ when the vendor emails about a related invoice payment. If the window closes with no response, the documented credits (customer returns, product destruction, and any co-marketing the vendor pre-approved through a promotion) can be deemed approved and applied, so credits don't sit in limbo on an unanswered email. Co-marketing the vendor never pre-approved is the exception: it always needs an explicit yes.

If a credit memo is still unresolved 90 days after delivery (a disputed line, or co-marketing awaiting an explicit yes), it escalates to retailer admins, who can approve it at the proposed amount, void it, or keep waiting. And because the vendor keeps 60 days to dispute any applied credit, including one that was deemed approved, nothing is ever truly final behind their back.

How Counter-Proposals Work

Instead of accepting outright, a vendor can counter-propose a different amount or open a "Let's discuss" thread. For example, if you submit a $500 credit for returned product and the vendor believes only $400 is justified, they can propose $400 with an explanation. The credit memo flips to In Discussion and a kickoff email goes to the retailer's escalation contact.

While In Discussion, ShelfiQ steps out and humans take over the conversation. When both sides agree, an admin uses the retailer's monthly statement page to finalize:

Notifications at Every Step

Both the retailer and vendor receive notifications throughout the process. Emails are sent when a memo is created, when the vendor responds, when a counter-proposal is submitted, when a credit is approved or voided, and on every reminder cycle through the review window. In-app notifications appear in each party's portal dashboard. See responding to credits for the vendor's perspective.

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