Hi egarske,

There's no need to issue a credit memo to the invoice. Let me provide further explanation.

For any expenses incur, you can create an expense transaction and use the Wash/Clearing account in the Category column from there. Doing this help reduces the balance of the Wash account.

Then, create a bank transfer for the remaining balance from Wash account to your business bank account.

To create a Wash/Clearing account, please follow these steps:

1. Go to the Gear icon and Chart of Accounts.
2. On the Chart of Accounts page, click the New button.
3. Choose Bank for the Account Type. You may choose any detail type you want for your wash/clearing account.
4. Enter a name of the clearing account.
5. Make sure the Balance field is zero and click on Save and Close.

I'm linking an article for more information about transferring funds between accounts.

These steps will also apply to QuickBooks Desktop.

That'll do it. Leave a comment below if you have any questions. I'll do everything I can to answer them.