Create a credit memo from an invoice

Hi accounting-quirk,

Welcome to Community!  QuickBooks Online has the features you need to create an apply credit memos seamlessly.  I'd be glad to assist!

To get started you'll want to follow these steps to create a credit memo;

1. Open + New from the left menu and select Credit memo

2. Use the ▼ dropdown menu to select the Customer 

3. Enter the credit memo details

4. When you're done, select Save and close.

Here's how to apply the credit memo to an invoice;

1. Select Sales and then Invoices from the left menu

2. Locate the Invoice and hit Receive payment

3. In the Outstanding Transactions section, select the open invoice you want to apply the credit memo to

4. Choose the credit memo you want to apply, in the Credits section

5. In the the Payment column, enter how much of the credit you want to apply

6. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank

7. Complete the remaining fields, including the Payment date

8. Make sure the total is correct after applying the credit memo

When you're done, hit Save and close.

Note; You can activate the auto-apply feature so QuickBooks applies the credit to an invoice for you, by following this helpful guide.

Please feel free to reach back out with any other questions.  We'd be happy to help!