Hello, @bronda.
I'm pleased to guide you today so you'll be able to apply a credit memo to your invoice successfully.
The credit memo and the invoice should have the same customer name so we can apply it when recording payment for the outstanding invoice.
- Click on Receive Payment from the New (+) icon.
- Under Customer, select the customer's name for the Invoice 966143.
- Select the invoice under the Outstanding Transactions section and the credit under Credits.
- Tap on the Save and close button to record the payment.
You can also read this article for more information about this action: Enter and apply credit memos and delayed credits in QuickBooks Online.
Reach out to me if there's anything else you need assistance with. I'm more than happy to help. Have a good day!