Hi there, @Rockydog.
You'll want to create an invoice to offset the balance. Let me show you how:
- Go to the Customers menu, select Create Invoices.
- From the Customer: Job drop-down, select a customer or customer job.
- Fill in the necessary information the same with your credit memo.
Once you've done creating an invoice then we can receive payment to apply the credit to the invoice.
I've got here an article to know more about credit memo: Give your customer credit or refund in QuickBooks Desktop for Windows.
Also, there's another way you can write off a customer's credit in QuickBooks. You can create a journal entry, however, be sure to reach out first to your accountant before using this option.
For customers with an overpayment, you can perform the following steps:
- Go to the Company menu and select Make General Journal Entries.
- Change the date and fill in the entry number if necessary in the journal entry.
- Select the Account field and select Accounts Receivable from the drop-down list.
- Enter the amount under the Debit column, tab to the Name column, and select a Customer Name from the dropdown list.
- In the next line, select the offset account and enter the amount under the Credit column. The offset account is usually an Expense account.
For more information, you can check out this article: Write off customer and vendor balances.
Keep me posted if you need anything else. I'm here to assist if you need help. Have a good one.