# Credit memo workflow without posting process

Source: https://developer.avalara.com/avatax-dm-combined-erp/sales-tax-badge/design-transaction-workflow/credit-memos-without-posting/

# Credit memo workflow without posting process

![](https://www.avalara.com/content/dam/assets/illustrations/diagrams/returns-without-posting.png)

When a customer returns an item through your system, first determine which [refund method](/avatax-dm-combined-erp/sales-tax-badge/transactions/refund-methods) you will use: [CreateTransaction](https://developer.avalara.com/api-reference/avatax/rest/v2/methods/Transactions/CreateTransaction/) or [RefundTransaction](https://developer.avalara.com/api-reference/avatax/rest/v2/methods/Transactions/RefundTransaction/). The method will vary based on the type of refund (for example, partial refund amount refund, refund a specific line item, etc.).

## Returns with CreateTransaction

1.  Call the [CreateTransaction](https://developer.avalara.com/api-reference/avatax/rest/v2/methods/Transactions/CreateTransaction/) endpoint with `type` set to `ReturnOrder` and then use one of the following methods:
    -   A `taxOverride` set to `TaxDate`
    -   A positive `quantity` and a negative `amount` for a line item
2.  Issue the credit memo.
3.  Call [CreateTransaction](https://developer.avalara.com/api-reference/avatax/rest/v2/methods/Transactions/CreateTransaction/) again. Set the `type` to `ReturnInvoice` and set `commit` to `true`.

## Returns with RefundTransaction

1.  Call the [RefundTransaction](https://developer.avalara.com/api-reference/avatax/rest/v2/methods/Transactions/RefundTransaction/) endpoint using the original transaction ID.
2.  Issue the credit memo.

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