AWS lets you choose how credit memos get applied to your invoices!

Hey there, I'm shiichan!

AWS What's New aws.amazon.com

Today I want to share a small but genuinely useful billing update from AWS.

What was announced?

According to AWS What's New, AWS now lets customers who pay through electronic funds transfer (EFT) configure preferences for how credit memos are automatically applied to outstanding invoices. You can set this up directly from the Payment Preferences page in the Billing and Cost Management console, and it's available in all commercial AWS Regions.

The available options are combinations of applying credit memos to the original invoice, the next eligible invoice, and the oldest unpaid invoice. By default, credit memos are applied to the original invoice first, and then to future invoices if there's anything left over.

The story so far

Up until now, credit memo application followed AWS's default behavior, and customers couldn't tailor it to match their own accounting or payment processes. Different companies have different internal rules — some want credits applied strictly to the original invoice, while others prefer to clear the oldest unpaid balance first.

What changes

With this update, finance teams can now choose how credit memos are applied directly in the console, matching their internal reconciliation process. This is especially helpful for companies paying via EFT, since it can simplify invoice reconciliation and bookkeeping. If you don't change anything, the existing default behavior (original invoice first) stays the same, so there's no disruption if you're happy with how things work today.

Wrap-up

• AWS added automatic credit memo application preferences for customers paying via EFT
• You can choose combinations of original invoice, next eligible invoice, and oldest unpaid invoice
• Configure it from the Payment Preferences page in the Billing and Cost Management console
• Available in all commercial AWS Regions, with the original-invoice-first default preserved
• A welcome update for finance and billing teams who want AWS's payment flow to match their internal processes!