Hi there, marketingmuses.
Credit memo is usually created if you want to use a credit as a payment to a future invoice.
As you mentioned and shown in the screenshot, the initial deposit is still recorded in your account. This can be the reason why there's a negative balance in the customer's account.
If you want to keep the original payment in the record, you can directly create a refund receipt or check to refund the customer instead. Otherwise, applying the credit memo as a payment to the original invoice will still leave a negative balance.
I also checked the screenshots and it looks like the Credit Memo was not applied successfully as a payment to the original invoice. Let's open the invoice again and redo the process:
- Click the 1 payment made link under the PAID status.
- Click the date of the payment.
- Make sure to check the box of the unapplied Credit memo in the Credits section.
- Click Save and close.
Let me share these articles for more details on how to record a refund or apply a credit memo:
I'll be around if you nee anything else.
