Hello, @bvdllimited.
If you already have an existing credit note recorded in QuickBooks Online, you can apply it to an invoice when receiving a payment.
Here's how:
- Select Receive Payment under Customers from the Plus (+) icon.
- Enter the customer's name under the Customer section, then select the invoice under the Outstanding Transactions.
- To apply the credit note to the invoice, select the credit note created under the Credits section.
- Save the transaction.
![g10 1.PNG g10 1.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/38671i962D42F737565882/image-size/large?v=v2&px=999)
![g10 2.PNG g10 2.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/38672i7A957DF047AEA249/image-size/large?v=v2&px=999)
If the Automatically apply credits feature was automatically turned on from the Accounts and Settings page, the credit added will automatically be applied to the invoice.![g10 3.PNG g10 3.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/38673iD4CC604240CD9933/image-size/large?v=v2&px=999)
For additional reference about entering and applying credit notes to invoices, read this article.
Reach out to me if you have any other questions. I'm always here to help. Have a good day!