Overview
Credit memos reduce what a customer owes — from overpayment, returned goods, or billing corrections. Unused balance can apply to future invoices or convert to a refund.
Where in the app: Sidebar → Sales → Credit Memos
Open: Credit Memos
Create a credit memo
From a paid invoice
- Invoice detail or list → Issue Credit Memo
- Select lines and amounts to credit
- Save — memo links to source invoice
Standalone
- Invoices list → New Credit Memo, or Credit Memos → New
- Select customer and line items
- Save
From a sales receipt
Receipt detail → Issue store credit when customer prefers credit over cash refund.
Credit memo list
| Column | Purpose |
|---|---|
| # | Memo number |
| Customer | Account |
| Amount | Total credit |
| Remaining | Unapplied balance |
| Date | Issue date |
| Status | Open, Applied, Refunded |
Apply credit
When receiving payment on an invoice:
- Open Receive Payment
- Select open credit memos for the customer
- Apply amount toward invoice balance
Remaining credit stays on the memo until fully used or refunded.
QuickBooks accounts
Warning: For QBO-connected companies, use Issue Credit Memo on paid invoices instead of voiding — void/delete may be blocked for synced documents. Credits sync to QuickBooks per your integration settings.