Hi @Rizwan Sharif ,
Thanks for visiting the QuickBooks Community. Allow me to help you apply a credit memo to your customer’s invoice in QuickBooks Online.
If a customer paid more than what was owed, returning a product, requesting a refund, or if you’re rewarding them with a store credit, you can create a Credit Memo. Once done, you can apply it to an open invoice for a given customer.
Here’s how to create a credit memo in QBO:
- Click the Plus (+) icon and select Credit Memo.
- Choose the customer name.
- Enter the Credit Memo Date.
- Fill in the necessary information.
- Click Save and close.
However, if you have already created a credit memo, you can proceed in applying it to the invoice. Follow the steps below on how:
- Click Sales from the left pane.
- Select Customers and click the customer’s name.
- Locate the invoice you want to apply the credit to and click Receive Payment.
- Enter the necessary information on the Receive Payment window.
- In the Outstanding Transactionssection, make sure that the correct invoice is selected.
- Click Save and close.
The steps above will help you apply the credit to your customer’s open invoices. For your reference, you may check out this article: Apply credit memos . Comment back, cheers.