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Is it possible to create a Credit Memo out of an Estimate (progress invoice)

I need help in creating a credit memo that is linked to an estimate we have. Is it possible to do so? 

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QuickBooks Team

Re: Is it possible to create a Credit Memo out of an Estimate (progress invoice)

Hello there, @JohnLapuz,


We're unable to create a credit memo out of an estimate. If your client had made an overpayment, then you can add a credit memo and apply it to the next invoice.


Here's how:

  1. Go to your Customers menu, then select Create Credit Memos/Refunds.
  2. Select a customer from the CUSTOMER:JOB drop-down list.
  3. Enter the Item and Amount, then click Save & Close.
  4. Select on how would you like to do with the credit.
  5. Click OK.

To apply the credit memo to the invoice, open the Receive Payments transaction. Then, click Apply Credits under the Unused Credits section.


If you need to track your progress invoices, check this out and go to Step 4 for your guidance: Set up and send progress invoices in QuickBooks Desktop.


An estimate is part of your usual A/R workflow in QuickBooks Desktop. To see the complete list of workflows and other customer-related transactions, feel free to read through this article: Accounts Receivable workflows in QuickBooks Desktop.


Should you need anything else with creating a credit memo, please let me know. I'd be glad to help you out.