diff --git a/src/PowderCoating.Web/Controllers/CreditMemosController.cs b/src/PowderCoating.Web/Controllers/CreditMemosController.cs
new file mode 100644
index 0000000..4f39c2f
--- /dev/null
+++ b/src/PowderCoating.Web/Controllers/CreditMemosController.cs
@@ -0,0 +1,355 @@
+using Microsoft.AspNetCore.Authorization;
+using Microsoft.AspNetCore.Identity;
+using Microsoft.AspNetCore.Mvc;
+using Microsoft.AspNetCore.Mvc.Rendering;
+using PowderCoating.Core.Entities;
+using PowderCoating.Core.Enums;
+using PowderCoating.Core.Interfaces;
+using PowderCoating.Shared.Constants;
+using System.ComponentModel.DataAnnotations;
+
+namespace PowderCoating.Web.Controllers;
+
+/// <summary>
+/// Manages the company-wide credit memo register. Credit memos reduce a customer's outstanding
+/// balance and can be issued standalone (goodwill, billing correction) or linked to an original
+/// invoice (price dispute, rework resolution). Applied portions reduce invoice BalanceDue and
+/// customer.CreditBalance atomically inside a transaction.
+/// </summary>
+[Authorize(Policy = AppConstants.Policies.CompanyAdminOnly)]
+public class CreditMemosController : Controller
+{
+    private readonly IUnitOfWork _unitOfWork;
+    private readonly ITenantContext _tenantContext;
+    private readonly UserManager<ApplicationUser> _userManager;
+    private readonly ILogger<CreditMemosController> _logger;
+
+    public CreditMemosController(
+        IUnitOfWork unitOfWork,
+        ITenantContext tenantContext,
+        UserManager<ApplicationUser> userManager,
+        ILogger<CreditMemosController> logger)
+    {
+        _unitOfWork = unitOfWork;
+        _tenantContext = tenantContext;
+        _userManager = userManager;
+        _logger = logger;
+    }
+
+    /// <summary>Lists all credit memos for the current company with optional status and text filters.</summary>
+    [HttpGet]
+    public async Task<IActionResult> Index(string? status, string? search)
+    {
+        var memos = await _unitOfWork.CreditMemos.FindAsync(
+            m => true, false,
+            m => m.Customer);
+
+        if (!string.IsNullOrWhiteSpace(search))
+            memos = memos.Where(m =>
+                DisplayName(m.Customer).Contains(search, StringComparison.OrdinalIgnoreCase) ||
+                m.MemoNumber.Contains(search, StringComparison.OrdinalIgnoreCase) ||
+                m.Reason.Contains(search, StringComparison.OrdinalIgnoreCase)).ToList();
+
+        if (!string.IsNullOrWhiteSpace(status) && Enum.TryParse<CreditMemoStatus>(status, out var parsed))
+            memos = memos.Where(m => m.Status == parsed).ToList();
+
+        ViewBag.Status = status ?? "";
+        ViewBag.Search = search ?? "";
+        ViewBag.ActiveCount = memos.Count(m => m.Status is CreditMemoStatus.Active or CreditMemoStatus.PartiallyApplied);
+        ViewBag.OutstandingBalance = memos
+            .Where(m => m.Status is not CreditMemoStatus.Voided and not CreditMemoStatus.FullyApplied)
+            .Sum(m => m.RemainingBalance);
+
+        return View(memos.OrderByDescending(m => m.IssueDate).ToList());
+    }
+
+    /// <summary>Shows a single credit memo with its full application history and an Apply modal for open invoices.</summary>
+    [HttpGet]
+    public async Task<IActionResult> Details(int id)
+    {
+        var memo = await _unitOfWork.CreditMemos.GetByIdAsync(
+            id, false,
+            m => m.Customer,
+            m => m.OriginalInvoice,
+            m => m.IssuedBy);
+
+        if (memo == null) return NotFound();
+
+        var applications = await _unitOfWork.CreditMemoApplications.FindAsync(
+            a => a.CreditMemoId == id, false,
+            a => a.Invoice,
+            a => a.AppliedBy);
+
+        var openInvoices = await _unitOfWork.Invoices.FindAsync(
+            i => i.CustomerId == memo.CustomerId
+              && i.Status != InvoiceStatus.Paid
+              && i.Status != InvoiceStatus.Voided
+              && i.Status != InvoiceStatus.WrittenOff);
+
+        ViewBag.Applications = applications.OrderByDescending(a => a.AppliedDate).ToList();
+        ViewBag.OpenInvoices  = openInvoices.Where(i => i.BalanceDue > 0).OrderBy(i => i.DueDate).ToList();
+        ViewBag.CanApply      = memo.Status is CreditMemoStatus.Active or CreditMemoStatus.PartiallyApplied
+                             && memo.RemainingBalance > 0;
+
+        return View(memo);
+    }
+
+    /// <summary>Shows the standalone credit-memo creation form. Accepts optional customerId/invoiceId query params to pre-populate.</summary>
+    [HttpGet]
+    public async Task<IActionResult> Create(int? customerId, int? invoiceId)
+    {
+        string? linkedInvoiceNumber = null;
+        if (invoiceId.HasValue)
+        {
+            var inv = await _unitOfWork.Invoices.GetByIdAsync(invoiceId.Value);
+            if (inv != null)
+            {
+                linkedInvoiceNumber = inv.InvoiceNumber;
+                customerId ??= inv.CustomerId;
+            }
+        }
+
+        await PopulateCustomersAsync(customerId);
+        ViewBag.LinkedInvoiceNumber = linkedInvoiceNumber;
+
+        return View(new CreditMemoCreateVm
+        {
+            CustomerId        = customerId ?? 0,
+            OriginalInvoiceId = invoiceId
+        });
+    }
+
+    /// <summary>
+    /// Creates a standalone credit memo and immediately increments customer.CreditBalance so the
+    /// credit is visible on the customer account before it is applied to any specific invoice.
+    /// </summary>
+    [HttpPost, ValidateAntiForgeryToken]
+    public async Task<IActionResult> Create(CreditMemoCreateVm vm)
+    {
+        if (!ModelState.IsValid)
+        {
+            await PopulateCustomersAsync(vm.CustomerId);
+            return View(vm);
+        }
+
+        var customer = await _unitOfWork.Customers.GetByIdAsync(vm.CustomerId);
+        if (customer == null)
+        {
+            ModelState.AddModelError("CustomerId", "Customer not found.");
+            await PopulateCustomersAsync(null);
+            return View(vm);
+        }
+
+        var companyId   = _tenantContext.GetCurrentCompanyId() ?? 0;
+        var memoNumber  = await GenerateMemoNumberAsync(companyId);
+        var currentUser = await _userManager.GetUserAsync(User);
+
+        var memo = new CreditMemo
+        {
+            MemoNumber        = memoNumber,
+            CustomerId        = vm.CustomerId,
+            OriginalInvoiceId = vm.OriginalInvoiceId > 0 ? vm.OriginalInvoiceId : null,
+            Amount            = vm.Amount,
+            AmountApplied     = 0,
+            IssueDate         = DateTime.UtcNow,
+            ExpiryDate        = vm.ExpiryDate.HasValue
+                                    ? DateTime.SpecifyKind(vm.ExpiryDate.Value, DateTimeKind.Utc)
+                                    : null,
+            Reason            = vm.Reason,
+            Notes             = vm.Notes,
+            Status            = CreditMemoStatus.Active,
+            IssuedById        = currentUser?.Id,
+            CompanyId         = companyId,
+            CreatedAt         = DateTime.UtcNow
+        };
+
+        await _unitOfWork.CreditMemos.AddAsync(memo);
+
+        customer.CreditBalance += vm.Amount;
+        await _unitOfWork.Customers.UpdateAsync(customer);
+
+        await _unitOfWork.CompleteAsync();
+
+        TempData["Success"] = $"Credit memo {memoNumber} for {vm.Amount:C} issued to {DisplayName(customer)}.";
+        return RedirectToAction(nameof(Details), new { id = memo.Id });
+    }
+
+    /// <summary>
+    /// Applies a portion of this credit memo to an open invoice. The applied amount is capped at the
+    /// minimum of the requested amount, the memo's RemainingBalance, and the invoice's BalanceDue —
+    /// preventing over-application even with concurrent requests. Customer.CreditBalance is reduced
+    /// by the same applied amount. Automatically marks the invoice Paid when BalanceDue reaches zero.
+    /// </summary>
+    [HttpPost, ValidateAntiForgeryToken]
+    public async Task<IActionResult> Apply(int id, int invoiceId, decimal amount)
+    {
+        try
+        {
+            var memo = await _unitOfWork.CreditMemos.GetByIdAsync(id);
+            if (memo == null) return NotFound();
+
+            var invoice = await _unitOfWork.Invoices.GetByIdAsync(invoiceId, false, i => i.Customer);
+            if (invoice == null)
+            {
+                TempData["Error"] = "Invoice not found.";
+                return RedirectToAction(nameof(Details), new { id });
+            }
+
+            if (memo.Status is CreditMemoStatus.Voided or CreditMemoStatus.FullyApplied)
+            {
+                TempData["Error"] = "Credit memo is not available to apply.";
+                return RedirectToAction(nameof(Details), new { id });
+            }
+
+            var applyAmount = Math.Min(amount, Math.Min(memo.RemainingBalance, invoice.BalanceDue));
+            if (applyAmount <= 0)
+            {
+                TempData["Error"] = "No applicable amount — invoice may already be paid or credit exhausted.";
+                return RedirectToAction(nameof(Details), new { id });
+            }
+
+            var currentUser = await _userManager.GetUserAsync(User);
+
+            await _unitOfWork.ExecuteInTransactionAsync(async () =>
+            {
+                await _unitOfWork.CreditMemoApplications.AddAsync(new CreditMemoApplication
+                {
+                    CreditMemoId  = id,
+                    InvoiceId     = invoiceId,
+                    AmountApplied = applyAmount,
+                    AppliedDate   = DateTime.UtcNow,
+                    AppliedById   = currentUser?.Id,
+                    CompanyId     = invoice.CompanyId,
+                    CreatedAt     = DateTime.UtcNow
+                });
+
+                invoice.CreditApplied += applyAmount;
+                await _unitOfWork.Invoices.UpdateAsync(invoice);
+
+                memo.AmountApplied += applyAmount;
+                memo.Status = memo.AmountApplied >= memo.Amount
+                    ? CreditMemoStatus.FullyApplied
+                    : CreditMemoStatus.PartiallyApplied;
+                await _unitOfWork.CreditMemos.UpdateAsync(memo);
+
+                if (invoice.Customer != null)
+                {
+                    invoice.Customer.CreditBalance = Math.Max(0, invoice.Customer.CreditBalance - applyAmount);
+                    await _unitOfWork.Customers.UpdateAsync(invoice.Customer);
+                }
+
+                if (invoice.BalanceDue <= 0 && invoice.Status != InvoiceStatus.Paid)
+                {
+                    invoice.Status   = InvoiceStatus.Paid;
+                    invoice.PaidDate = DateTime.UtcNow;
+                    await _unitOfWork.Invoices.UpdateAsync(invoice);
+                }
+
+                await _unitOfWork.CompleteAsync();
+            });
+
+            TempData["Success"] = $"{applyAmount:C} applied to invoice {invoice.InvoiceNumber}.";
+        }
+        catch (Exception ex)
+        {
+            _logger.LogError(ex, "Error applying credit memo {MemoId} to invoice {InvoiceId}", id, invoiceId);
+            TempData["Error"] = "An error occurred applying the credit.";
+        }
+
+        return RedirectToAction(nameof(Details), new { id });
+    }
+
+    /// <summary>
+    /// Voids a credit memo and reverses only the unapplied remainder from customer.CreditBalance.
+    /// The portion already applied to invoices is NOT reversed — those reductions to BalanceDue are
+    /// settled and form part of the immutable audit trail.
+    /// </summary>
+    [HttpPost, ValidateAntiForgeryToken]
+    public async Task<IActionResult> Void(int id)
+    {
+        var memo = await _unitOfWork.CreditMemos.GetByIdAsync(id, false, m => m.Customer);
+        if (memo == null) return NotFound();
+
+        if (memo.Status == CreditMemoStatus.Voided)
+        {
+            TempData["Error"] = "Credit memo is already voided.";
+            return RedirectToAction(nameof(Details), new { id });
+        }
+
+        var remaining  = memo.Amount - memo.AmountApplied;
+        memo.Status    = CreditMemoStatus.Voided;
+        memo.UpdatedAt = DateTime.UtcNow;
+        await _unitOfWork.CreditMemos.UpdateAsync(memo);
+
+        if (remaining > 0 && memo.Customer != null)
+        {
+            memo.Customer.CreditBalance = Math.Max(0, memo.Customer.CreditBalance - remaining);
+            await _unitOfWork.Customers.UpdateAsync(memo.Customer);
+        }
+
+        await _unitOfWork.CompleteAsync();
+        TempData["Success"] = "Credit memo voided. Unapplied balance reversed from customer credit.";
+        return RedirectToAction(nameof(Details), new { id });
+    }
+
+    private async Task PopulateCustomersAsync(int? selectedId)
+    {
+        var customers = await _unitOfWork.Customers.GetAllAsync();
+        ViewBag.Customers = customers
+            .OrderBy(c => c.CompanyName ?? $"{c.ContactFirstName} {c.ContactLastName}".Trim())
+            .Select(c => new SelectListItem
+            {
+                Value    = c.Id.ToString(),
+                Text     = c.IsTaxExempt ? $"{DisplayName(c)} ★" : DisplayName(c),
+                Selected = c.Id == selectedId
+            })
+            .ToList();
+    }
+
+    /// <summary>
+    /// Generates the next sequential memo number in CM-YYMM-#### format.
+    /// Uses IgnoreQueryFilters so soft-deleted memos count, preventing number reuse.
+    /// </summary>
+    private async Task<string> GenerateMemoNumberAsync(int companyId)
+    {
+        var prefix   = $"CM-{DateTime.UtcNow:yy}{DateTime.UtcNow.Month:D2}-";
+        var existing = (await _unitOfWork.CreditMemos.FindAsync(
+                m => m.CompanyId == companyId && m.MemoNumber.StartsWith(prefix), true))
+            .Select(m => m.MemoNumber)
+            .ToList();
+
+        var maxNum = 0;
+        foreach (var num in existing)
+        {
+            var suffix = num.Length >= prefix.Length + 4 ? num[prefix.Length..] : "";
+            if (int.TryParse(suffix, out int n) && n > maxNum)
+                maxNum = n;
+        }
+        return $"{prefix}{(maxNum + 1):D4}";
+    }
+
+    private static string DisplayName(Customer? c) =>
+        c == null ? string.Empty :
+        !string.IsNullOrWhiteSpace(c.CompanyName) ? c.CompanyName
+        : $"{c.ContactFirstName} {c.ContactLastName}".Trim();
+}
+
+public class CreditMemoCreateVm
+{
+    [Required, Range(1, int.MaxValue, ErrorMessage = "Please select a customer.")]
+    public int CustomerId { get; set; }
+
+    [Required, Range(0.01, 1_000_000, ErrorMessage = "Amount must be greater than $0.00.")]
+    public decimal Amount { get; set; }
+
+    [Required, MaxLength(500, ErrorMessage = "Reason cannot exceed 500 characters.")]
+    public string Reason { get; set; } = string.Empty;
+
+    [MaxLength(2000)]
+    public string? Notes { get; set; }
+
+    public DateTime? ExpiryDate { get; set; }
+
+    /// <summary>Optional link to the invoice that prompted this credit (price dispute, billing error, etc.).</summary>
+    public int? OriginalInvoiceId { get; set; }
+}
diff --git a/src/PowderCoating.Web/Views/CreditMemos/Create.cshtml b/src/PowderCoating.Web/Views/CreditMemos/Create.cshtml
new file mode 100644
index 0000000..1305084
--- /dev/null
+++ b/src/PowderCoating.Web/Views/CreditMemos/Create.cshtml
@@ -0,0 +1,92 @@
+@model PowderCoating.Web.Controllers.CreditMemoCreateVm
+@{
+    ViewData["Title"] = "Issue Credit Memo";
+    var linkedInvoiceNumber = ViewBag.LinkedInvoiceNumber as string;
+    var customers = ViewBag.Customers as List<Microsoft.AspNetCore.Mvc.Rendering.SelectListItem> ?? new();
+}
+
+<div class="d-flex justify-content-between align-items-center mb-3">
+    <h4 class="mb-0"><i class="bi bi-journal-minus me-2 text-primary"></i>Issue Credit Memo</h4>
+    <a asp-action="Index" class="btn btn-outline-secondary btn-sm">
+        <i class="bi bi-arrow-left me-1"></i>Back to Credit Memos
+    </a>
+</div>
+
+<div class="row justify-content-center">
+    <div class="col-lg-7">
+        <div class="card">
+            <div class="card-header fw-semibold">Credit Memo Details</div>
+            <div class="card-body">
+                <form asp-action="Create" method="post">
+                    @Html.AntiForgeryToken()
+                    <asp-validation-summary asp-validation-summary="All" class="alert alert-danger alert-permanent"></asp-validation-summary>
+
+                    @if (Model.OriginalInvoiceId.HasValue && !string.IsNullOrEmpty(linkedInvoiceNumber))
+                    {
+                        <input type="hidden" asp-for="OriginalInvoiceId" />
+                        <div class="alert alert-info alert-permanent py-2 mb-3 small">
+                            <i class="bi bi-link-45deg me-1"></i>
+                            Linked to invoice <strong>@linkedInvoiceNumber</strong>
+                        </div>
+                    }
+
+                    <div class="mb-3">
+                        <label asp-for="CustomerId" class="form-label">Customer <span class="text-danger">*</span></label>
+                        <select asp-for="CustomerId" asp-items="customers" class="form-select">
+                            <option value="0">— select customer —</option>
+                        </select>
+                        <span asp-validation-for="CustomerId" class="text-danger small"></span>
+                    </div>
+
+                    <div class="mb-3">
+                        <label asp-for="Amount" class="form-label">Credit Amount <span class="text-danger">*</span></label>
+                        <div class="input-group">
+                            <span class="input-group-text">$</span>
+                            <input asp-for="Amount" type="number" step="0.01" min="0.01"
+                                   class="form-control" placeholder="0.00" />
+                        </div>
+                        <span asp-validation-for="Amount" class="text-danger small"></span>
+                    </div>
+
+                    <div class="mb-3">
+                        <label asp-for="Reason" class="form-label">Reason <span class="text-danger">*</span></label>
+                        <input asp-for="Reason" class="form-control"
+                               placeholder="e.g. Price adjustment, billing error, goodwill credit…" />
+                        <span asp-validation-for="Reason" class="text-danger small"></span>
+                    </div>
+
+                    <div class="mb-3">
+                        <label asp-for="Notes" class="form-label">Internal Notes</label>
+                        <textarea asp-for="Notes" class="form-control" rows="3"
+                                  placeholder="Additional context for your records (not shown to customer)"></textarea>
+                        <span asp-validation-for="Notes" class="text-danger small"></span>
+                    </div>
+
+                    <div class="mb-4">
+                        <label asp-for="ExpiryDate" class="form-label">
+                            Expiry Date
+                            <span class="text-muted small ms-1">(optional — leave blank for no expiry)</span>
+                        </label>
+                        <input asp-for="ExpiryDate" type="date" class="form-control" />
+                        <span asp-validation-for="ExpiryDate" class="text-danger small"></span>
+                    </div>
+
+                    <div class="d-flex gap-2">
+                        <button type="submit" class="btn btn-primary">
+                            <i class="bi bi-check-lg me-1"></i>Issue Credit Memo
+                        </button>
+                        <a asp-action="Index" class="btn btn-outline-secondary">Cancel</a>
+                    </div>
+                </form>
+            </div>
+        </div>
+
+        <div class="card mt-3 border-0 bg-light">
+            <div class="card-body py-2 small text-muted">
+                <i class="bi bi-info-circle me-1"></i>
+                Issuing a credit memo immediately adds the amount to the customer's credit balance.
+                You can apply it to one or more open invoices from the Credit Memo Details page.
+            </div>
+        </div>
+    </div>
+</div>
diff --git a/src/PowderCoating.Web/Views/CreditMemos/Details.cshtml b/src/PowderCoating.Web/Views/CreditMemos/Details.cshtml
new file mode 100644
index 0000000..5e078a5
--- /dev/null
+++ b/src/PowderCoating.Web/Views/CreditMemos/Details.cshtml
@@ -0,0 +1,307 @@
+@model PowderCoating.Core.Entities.CreditMemo
+@using PowderCoating.Core.Entities
+@using PowderCoating.Core.Enums
+@{
+    ViewData["Title"] = $"Credit Memo {Model.MemoNumber}";
+    var applications = ViewBag.Applications as List<CreditMemoApplication> ?? new();
+    var openInvoices = ViewBag.OpenInvoices as List<Invoice> ?? new();
+    bool canApply    = ViewBag.CanApply;
+
+    var (badgeClass, badgeLabel) = Model.Status switch
+    {
+        CreditMemoStatus.Active           => ("bg-success-subtle text-success border border-success-subtle", "Active"),
+        CreditMemoStatus.PartiallyApplied => ("bg-warning-subtle text-warning border border-warning-subtle", "Partially Applied"),
+        CreditMemoStatus.FullyApplied     => ("bg-secondary-subtle text-secondary border border-secondary-subtle", "Fully Applied"),
+        CreditMemoStatus.Voided           => ("bg-danger-subtle text-danger border border-danger-subtle", "Voided"),
+        _                                 => ("bg-secondary-subtle text-secondary", Model.Status.ToString())
+    };
+}
+
+@if (TempData["Success"] != null)
+{
+    <div class="alert alert-success alert-permanent alert-dismissible fade show">
+        @TempData["Success"]
+        <button type="button" class="btn-close" data-bs-dismiss="alert"></button>
+    </div>
+}
+@if (TempData["Error"] != null)
+{
+    <div class="alert alert-danger alert-permanent alert-dismissible fade show">
+        @TempData["Error"]
+        <button type="button" class="btn-close" data-bs-dismiss="alert"></button>
+    </div>
+}
+
+@* ── Header ────────────────────────────────────────────────────── *@
+<div class="d-flex justify-content-between align-items-start mb-3">
+    <div>
+        <h4 class="mb-1">
+            <i class="bi bi-journal-minus me-2 text-primary"></i>@Model.MemoNumber
+            <span class="badge @badgeClass ms-2 fs-6">@badgeLabel</span>
+        </h4>
+        <div class="text-muted">
+            Customer: <a asp-controller="Customers" asp-action="Details" asp-route-id="@Model.CustomerId"
+                         class="fw-semibold text-decoration-none">
+                @(string.IsNullOrWhiteSpace(Model.Customer?.CompanyName) ? $"{Model.Customer?.ContactFirstName} {Model.Customer?.ContactLastName}".Trim() : Model.Customer.CompanyName)
+            </a>
+        </div>
+    </div>
+    <div class="d-flex gap-2">
+        @if (canApply && openInvoices.Any())
+        {
+            <button class="btn btn-primary btn-sm" data-bs-toggle="modal" data-bs-target="#applyModal">
+                <i class="bi bi-check2-circle me-1"></i>Apply to Invoice
+            </button>
+        }
+        @if (Model.Status != CreditMemoStatus.Voided)
+        {
+            <button class="btn btn-outline-danger btn-sm" data-bs-toggle="modal" data-bs-target="#voidModal">
+                <i class="bi bi-x-circle me-1"></i>Void
+            </button>
+        }
+        <a asp-action="Index" class="btn btn-outline-secondary btn-sm">
+            <i class="bi bi-arrow-left me-1"></i>Back
+        </a>
+    </div>
+</div>
+
+<div class="row g-3">
+    @* ── Left: memo details ──────────────────────────────────────── *@
+    <div class="col-lg-5">
+        <div class="card h-100">
+            <div class="card-header fw-semibold">Credit Memo Details</div>
+            <div class="card-body">
+                @* Balance summary *@
+                <div class="row text-center mb-4">
+                    <div class="col-4 border-end">
+                        <div class="small text-muted">Total Credit</div>
+                        <div class="fs-5 fw-bold">@Model.Amount.ToString("C")</div>
+                    </div>
+                    <div class="col-4 border-end">
+                        <div class="small text-muted">Applied</div>
+                        <div class="fs-5 fw-bold text-secondary">@Model.AmountApplied.ToString("C")</div>
+                    </div>
+                    <div class="col-4">
+                        <div class="small text-muted">Remaining</div>
+                        <div class="fs-5 fw-bold @(Model.RemainingBalance > 0 ? "text-success" : "text-secondary")">
+                            @Model.RemainingBalance.ToString("C")
+                        </div>
+                    </div>
+                </div>
+
+                <dl class="row mb-0 small">
+                    <dt class="col-5 text-muted">Issue Date</dt>
+                    <dd class="col-7">@Model.IssueDate.ToLocalTime().ToString("MMMM d, yyyy")</dd>
+
+                    <dt class="col-5 text-muted">Expiry Date</dt>
+                    <dd class="col-7">
+                        @if (Model.ExpiryDate.HasValue)
+                        {
+                            var expired = Model.ExpiryDate.Value < DateTime.UtcNow;
+                            <span class="@(expired ? "text-danger fw-semibold" : "")">
+                                @Model.ExpiryDate.Value.ToLocalTime().ToString("MMMM d, yyyy")
+                                @if (expired) { <small>(Expired)</small> }
+                            </span>
+                        }
+                        else
+                        {
+                            <span class="text-muted">No expiry</span>
+                        }
+                    </dd>
+
+                    @if (Model.OriginalInvoice != null)
+                    {
+                        <dt class="col-5 text-muted">Original Invoice</dt>
+                        <dd class="col-7">
+                            <a asp-controller="Invoices" asp-action="Details" asp-route-id="@Model.OriginalInvoiceId"
+                               class="text-decoration-none">@Model.OriginalInvoice.InvoiceNumber</a>
+                        </dd>
+                    }
+
+                    <dt class="col-5 text-muted">Issued By</dt>
+                    <dd class="col-7">@(Model.IssuedBy?.FullName ?? "System")</dd>
+
+                    <dt class="col-5 text-muted">Reason</dt>
+                    <dd class="col-7">@Model.Reason</dd>
+
+                    @if (!string.IsNullOrWhiteSpace(Model.Notes))
+                    {
+                        <dt class="col-5 text-muted">Notes</dt>
+                        <dd class="col-7">@Model.Notes</dd>
+                    }
+                </dl>
+            </div>
+        </div>
+    </div>
+
+    @* ── Right: application history ──────────────────────────────── *@
+    <div class="col-lg-7">
+        <div class="card h-100">
+            <div class="card-header fw-semibold d-flex justify-content-between align-items-center">
+                <span>Application History</span>
+                <span class="badge bg-secondary-subtle text-secondary">@applications.Count applied</span>
+            </div>
+            <div class="card-body p-0">
+                @if (!applications.Any())
+                {
+                    <div class="p-4 text-muted text-center">
+                        <i class="bi bi-info-circle me-1"></i>
+                        This credit memo has not been applied to any invoice yet.
+                        @if (canApply && openInvoices.Any())
+                        {
+                            <span>Use <strong>Apply to Invoice</strong> above to apply it.</span>
+                        }
+                        else if (canApply && !openInvoices.Any())
+                        {
+                            <span>No open invoices with a balance due for this customer.</span>
+                        }
+                    </div>
+                }
+                else
+                {
+                    <div class="table-responsive">
+                        <table class="table table-sm align-middle mb-0">
+                            <thead class="table-light">
+                                <tr>
+                                    <th>Invoice</th>
+                                    <th>Date Applied</th>
+                                    <th class="text-end">Amount</th>
+                                    <th>Applied By</th>
+                                </tr>
+                            </thead>
+                            <tbody>
+                                @foreach (var a in applications)
+                                {
+                                    <tr>
+                                        <td>
+                                            <a asp-controller="Invoices" asp-action="Details"
+                                               asp-route-id="@a.InvoiceId" class="text-decoration-none">
+                                                @(a.Invoice?.InvoiceNumber ?? $"#{a.InvoiceId}")
+                                            </a>
+                                        </td>
+                                        <td>@a.AppliedDate.ToLocalTime().ToString("MM/dd/yyyy")</td>
+                                        <td class="text-end fw-semibold text-success">@a.AmountApplied.ToString("C")</td>
+                                        <td class="small text-muted">@(a.AppliedBy?.FullName ?? "—")</td>
+                                    </tr>
+                                }
+                            </tbody>
+                        </table>
+                    </div>
+                }
+            </div>
+        </div>
+    </div>
+</div>
+
+@* ── Apply Modal ─────────────────────────────────────────────── *@
+@if (canApply)
+{
+    <div class="modal fade" id="applyModal" tabindex="-1"
+         data-remaining-balance="@Model.RemainingBalance.ToString("F2", System.Globalization.CultureInfo.InvariantCulture)">
+        <div class="modal-dialog">
+            <div class="modal-content">
+                <form asp-action="Apply" asp-route-id="@Model.Id" method="post">
+                    @Html.AntiForgeryToken()
+                    <div class="modal-header">
+                        <h5 class="modal-title">Apply Credit to Invoice</h5>
+                        <button type="button" class="btn-close" data-bs-dismiss="modal"></button>
+                    </div>
+                    <div class="modal-body">
+                        <div class="alert alert-info alert-permanent py-2 small">
+                            <strong>Available credit: @Model.RemainingBalance.ToString("C")</strong>
+                        </div>
+
+                        @if (!openInvoices.Any())
+                        {
+                            <p class="text-muted">No open invoices with a balance due for this customer.</p>
+                        }
+                        else
+                        {
+                            <div class="mb-3">
+                                <label class="form-label">Select Invoice</label>
+                                <select name="invoiceId" id="applyInvoiceId" class="form-select" required>
+                                    <option value="">— choose invoice —</option>
+                                    @foreach (var inv in openInvoices)
+                                    {
+                                        <option value="@inv.Id"
+                                                data-balance="@inv.BalanceDue.ToString("F2")">
+                                            @inv.InvoiceNumber — Due @inv.BalanceDue.ToString("C")
+                                            @if (inv.DueDate.HasValue && inv.DueDate.Value < DateTime.UtcNow)
+                                            { <text>(Overdue)</text> }
+                                        </option>
+                                    }
+                                </select>
+                            </div>
+                            <div class="mb-3">
+                                <label class="form-label">Amount to Apply</label>
+                                <div class="input-group">
+                                    <span class="input-group-text">$</span>
+                                    <input type="number" name="amount" id="applyAmount"
+                                           class="form-control" step="0.01" min="0.01"
+                                           max="@Model.RemainingBalance.ToString("F2")" required />
+                                </div>
+                                <div id="applyMaxHint" class="form-text text-muted"></div>
+                            </div>
+                        }
+                    </div>
+                    @if (openInvoices.Any())
+                    {
+                        <div class="modal-footer">
+                            <button type="button" class="btn btn-secondary" data-bs-dismiss="modal">Cancel</button>
+                            <button type="submit" class="btn btn-primary">Apply Credit</button>
+                        </div>
+                    }
+                    else
+                    {
+                        <div class="modal-footer">
+                            <button type="button" class="btn btn-secondary" data-bs-dismiss="modal">Close</button>
+                        </div>
+                    }
+                </form>
+            </div>
+        </div>
+    </div>
+}
+
+@* ── Void Confirm Modal ──────────────────────────────────────── *@
+@if (Model.Status != CreditMemoStatus.Voided)
+{
+    <div class="modal fade" id="voidModal" tabindex="-1">
+        <div class="modal-dialog">
+            <div class="modal-content">
+                <form asp-action="Void" asp-route-id="@Model.Id" method="post">
+                    @Html.AntiForgeryToken()
+                    <div class="modal-header">
+                        <h5 class="modal-title">Void Credit Memo</h5>
+                        <button type="button" class="btn-close" data-bs-dismiss="modal"></button>
+                    </div>
+                    <div class="modal-body">
+                        <p>Are you sure you want to void <strong>@Model.MemoNumber</strong>?</p>
+                        @if (Model.RemainingBalance > 0)
+                        {
+                            <div class="alert alert-warning alert-permanent py-2">
+                                The unapplied balance of <strong>@Model.RemainingBalance.ToString("C")</strong>
+                                will be reversed from <strong>@(string.IsNullOrWhiteSpace(Model.Customer?.CompanyName) ? $"{Model.Customer?.ContactFirstName} {Model.Customer?.ContactLastName}".Trim() : Model.Customer?.CompanyName)</strong>'s credit balance.
+                            </div>
+                        }
+                        @if (Model.AmountApplied > 0)
+                        {
+                            <p class="small text-muted mb-0">
+                                The <strong>@Model.AmountApplied.ToString("C")</strong> already applied to invoices
+                                will <em>not</em> be reversed.
+                            </p>
+                        }
+                    </div>
+                    <div class="modal-footer">
+                        <button type="button" class="btn btn-secondary" data-bs-dismiss="modal">Cancel</button>
+                        <button type="submit" class="btn btn-danger">Void Credit Memo</button>
+                    </div>
+                </form>
+            </div>
+        </div>
+    </div>
+}
+
+@section Scripts {
+    <script src="~/js/credit-memo.js"></script>
+}
diff --git a/src/PowderCoating.Web/Views/CreditMemos/Index.cshtml b/src/PowderCoating.Web/Views/CreditMemos/Index.cshtml
new file mode 100644
index 0000000..fc6cb94
--- /dev/null
+++ b/src/PowderCoating.Web/Views/CreditMemos/Index.cshtml
@@ -0,0 +1,166 @@
+@model List<PowderCoating.Core.Entities.CreditMemo>
+@using PowderCoating.Core.Enums
+@{
+    ViewData["Title"] = "Credit Memos";
+    var status  = ViewBag.Status as string ?? "";
+    var search  = ViewBag.Search as string ?? "";
+    int    activeCount  = ViewBag.ActiveCount;
+    decimal outstanding = ViewBag.OutstandingBalance;
+}
+
+<div class="d-flex justify-content-between align-items-center mb-3">
+    <h4 class="mb-0"><i class="bi bi-journal-minus me-2 text-primary"></i>Credit Memos</h4>
+    <a asp-action="Create" class="btn btn-primary btn-sm">
+        <i class="bi bi-plus-lg me-1"></i>Issue Credit Memo
+    </a>
+</div>
+
+@if (TempData["Success"] != null)
+{
+    <div class="alert alert-success alert-permanent alert-dismissible fade show">
+        @TempData["Success"]
+        <button type="button" class="btn-close" data-bs-dismiss="alert"></button>
+    </div>
+}
+@if (TempData["Error"] != null)
+{
+    <div class="alert alert-danger alert-permanent alert-dismissible fade show">
+        @TempData["Error"]
+        <button type="button" class="btn-close" data-bs-dismiss="alert"></button>
+    </div>
+}
+
+@* ── Stats bar ─────────────────────────────────────────────────── *@
+<div class="row g-3 mb-4">
+    <div class="col-sm-6 col-lg-3">
+        <div class="card border-0 bg-primary-subtle h-100">
+            <div class="card-body">
+                <div class="text-primary fw-semibold small">Active Memos</div>
+                <div class="fs-3 fw-bold">@activeCount</div>
+            </div>
+        </div>
+    </div>
+    <div class="col-sm-6 col-lg-3">
+        <div class="card border-0 bg-warning-subtle h-100">
+            <div class="card-body">
+                <div class="text-warning fw-semibold small">Outstanding Credit</div>
+                <div class="fs-3 fw-bold">@outstanding.ToString("C")</div>
+            </div>
+        </div>
+    </div>
+    <div class="col-sm-6 col-lg-3">
+        <div class="card border-0 bg-success-subtle h-100">
+            <div class="card-body">
+                <div class="text-success fw-semibold small">Total Memos</div>
+                <div class="fs-3 fw-bold">@Model.Count</div>
+            </div>
+        </div>
+    </div>
+    <div class="col-sm-6 col-lg-3">
+        <div class="card border-0 bg-secondary-subtle h-100">
+            <div class="card-body">
+                <div class="text-secondary fw-semibold small">Total Issued</div>
+                <div class="fs-3 fw-bold">@Model.Sum(m => m.Amount).ToString("C")</div>
+            </div>
+        </div>
+    </div>
+</div>
+
+@* ── Filters ──────────────────────────────────────────────────── *@
+<div class="card mb-3">
+    <div class="card-body py-2">
+        <form method="get" class="row g-2 align-items-end">
+            <div class="col-md-4">
+                <label class="form-label small mb-1">Search</label>
+                <input name="search" value="@search" class="form-control form-control-sm"
+                       placeholder="Customer, memo #, or reason…" />
+            </div>
+            <div class="col-md-3">
+                <label class="form-label small mb-1">Status</label>
+                <select name="status" class="form-select form-select-sm">
+                    <option value="" selected="@(status == "")">All Statuses</option>
+                    <option value="Active" selected="@(status == "Active")">Active</option>
+                    <option value="PartiallyApplied" selected="@(status == "PartiallyApplied")">Partially Applied</option>
+                    <option value="FullyApplied" selected="@(status == "FullyApplied")">Fully Applied</option>
+                    <option value="Voided" selected="@(status == "Voided")">Voided</option>
+                </select>
+            </div>
+            <div class="col-md-auto">
+                <button type="submit" class="btn btn-sm btn-primary">Filter</button>
+                <a asp-action="Index" class="btn btn-sm btn-outline-secondary ms-1">Clear</a>
+            </div>
+        </form>
+    </div>
+</div>
+
+@* ── Table ────────────────────────────────────────────────────── *@
+@if (!Model.Any())
+{
+    <div class="alert alert-info alert-permanent">No credit memos found.</div>
+}
+else
+{
+    <div class="card">
+        <div class="table-responsive">
+            <table class="table table-hover align-middle mb-0">
+                <thead class="table-light">
+                    <tr>
+                        <th>Memo #</th>
+                        <th>Customer</th>
+                        <th class="text-end">Amount</th>
+                        <th class="text-end">Applied</th>
+                        <th class="text-end">Remaining</th>
+                        <th>Issue Date</th>
+                        <th>Expires</th>
+                        <th>Status</th>
+                        <th></th>
+                    </tr>
+                </thead>
+                <tbody>
+                    @foreach (var m in Model)
+                    {
+                        var rowClass = m.Status == CreditMemoStatus.Voided ? "text-muted" : "";
+                        var expired  = m.ExpiryDate.HasValue && m.ExpiryDate.Value < DateTime.UtcNow
+                                    && m.Status != CreditMemoStatus.FullyApplied
+                                    && m.Status != CreditMemoStatus.Voided;
+                        <tr class="@rowClass">
+                            <td>
+                                <a asp-action="Details" asp-route-id="@m.Id" class="fw-semibold text-decoration-none">
+                                    @m.MemoNumber
+                                </a>
+                            </td>
+                            <td>@(string.IsNullOrWhiteSpace(m.Customer?.CompanyName) ? $"{m.Customer?.ContactFirstName} {m.Customer?.ContactLastName}".Trim() : m.Customer.CompanyName)</td>
+                            <td class="text-end">@m.Amount.ToString("C")</td>
+                            <td class="text-end">@m.AmountApplied.ToString("C")</td>
+                            <td class="text-end @(m.RemainingBalance > 0 && m.Status != CreditMemoStatus.Voided ? "text-success fw-semibold" : "")">
+                                @m.RemainingBalance.ToString("C")
+                            </td>
+                            <td>@m.IssueDate.ToLocalTime().ToString("MM/dd/yyyy")</td>
+                            <td class="@(expired ? "text-danger fw-semibold" : "")">
+                                @(m.ExpiryDate.HasValue ? m.ExpiryDate.Value.ToLocalTime().ToString("MM/dd/yyyy") : "—")
+                                @if (expired) { <small>(Expired)</small> }
+                            </td>
+                            <td>
+                                @{
+                                    var (badgeClass, badgeLabel) = m.Status switch
+                                    {
+                                        CreditMemoStatus.Active          => ("bg-success-subtle text-success", "Active"),
+                                        CreditMemoStatus.PartiallyApplied => ("bg-warning-subtle text-warning", "Partial"),
+                                        CreditMemoStatus.FullyApplied    => ("bg-secondary-subtle text-secondary", "Applied"),
+                                        CreditMemoStatus.Voided          => ("bg-danger-subtle text-danger", "Voided"),
+                                        _                                => ("bg-secondary-subtle text-secondary", m.Status.ToString())
+                                    };
+                                }
+                                <span class="badge @badgeClass">@badgeLabel</span>
+                            </td>
+                            <td class="text-end">
+                                <a asp-action="Details" asp-route-id="@m.Id"
+                                   class="btn btn-sm btn-outline-primary">Details</a>
+                            </td>
+                        </tr>
+                    }
+                </tbody>
+            </table>
+        </div>
+    </div>
+}
diff --git a/src/PowderCoating.Web/Views/Shared/_Layout.cshtml b/src/PowderCoating.Web/Views/Shared/_Layout.cshtml
index 99b19be..94ea8da 100644
--- a/src/PowderCoating.Web/Views/Shared/_Layout.cshtml
+++ b/src/PowderCoating.Web/Views/Shared/_Layout.cshtml
@@ -1077,6 +1077,10 @@
                             <span>Online Payments</span>
                         </a>
                     }
+                    <a asp-controller="CreditMemos" asp-action="Index" class="nav-link">
+                        <i class="bi bi-journal-minus"></i>
+                        <span>Credit Memos</span>
+                    </a>
                     <a asp-controller="GiftCertificates" asp-action="Index" class="nav-link">
                         <i class="bi bi-gift"></i>
                         <span>Gift Certificates</span>
diff --git a/src/PowderCoating.Web/wwwroot/js/credit-memo.js b/src/PowderCoating.Web/wwwroot/js/credit-memo.js
new file mode 100644
index 0000000..cd072ae
--- /dev/null
+++ b/src/PowderCoating.Web/wwwroot/js/credit-memo.js
@@ -0,0 +1,30 @@
+(function () {
+    'use strict';
+
+    document.addEventListener('DOMContentLoaded', function () {
+        var modal = document.getElementById('applyModal');
+        if (!modal) return;
+
+        var remainingBalance = parseFloat(modal.dataset.remainingBalance || '0');
+        var invoiceSelect    = document.getElementById('applyInvoiceId');
+        var amountInput      = document.getElementById('applyAmount');
+        var maxHint          = document.getElementById('applyMaxHint');
+
+        if (!invoiceSelect) return;
+
+        invoiceSelect.addEventListener('change', function () {
+            var selected = this.options[this.selectedIndex];
+            if (!selected || !selected.value) {
+                amountInput.value = '';
+                if (maxHint) maxHint.textContent = '';
+                return;
+            }
+
+            var invoiceBalance = parseFloat(selected.dataset.balance || '0');
+            var max = Math.min(remainingBalance, invoiceBalance);
+            amountInput.value = max.toFixed(2);
+            amountInput.max   = max.toFixed(2);
+            if (maxHint) maxHint.textContent = 'Max applicable: $' + max.toFixed(2);
+        });
+    });
+})();