How to Apply Credit Memo to Invoice in QuickBooks Online

Applying a credit memo to an invoice in QuickBooks Online is a common task when managing your financial transactions. Credit memos are used to correct billing errors or issue refunds, while invoices represent what your customers owe you. 

Here are instructions on how to apply a credit memo to an invoice in QuickBooks Online:

Step 1: Sign in to QuickBooks Online

Start by logging in to your QuickBooks Online account. Make sure you have the necessary permissions to perform this task.

Step 2: Navigate to the Sales Menu

From the dashboard, click on the “Sales” tab in the left-hand menu. This will open a drop-down menu with various sales-related options.

Step 3: Open Invoices

Select “Invoices” from the drop-down menu. This will take you to a list of your invoices.

Step 4: Locate the Invoice

Find the invoice you want to apply the credit memo to. Click on it to open the invoice details.

Step 5: Apply the Credit Memo

Within the invoice details, look for the “Apply Credits” link or button. Click on it to proceed.

Step 6: Select the Credit Memo

In the “Apply Credits” window, you’ll see a list of available credit memos. Check the box next to the credit memo you want to apply to the invoice.

Step 7: Review the Amount

QuickBooks Online will automatically fill in the amount to apply, which is the total amount of the credit memo. You can adjust this amount if needed.

Step 8: Save Your Changes

After confirming the details and ensuring they are correct, click the “Save” or “Save and close” button to apply the credit memo to the invoice.

Step 9: Verify the Changes

Return to your list of invoices and check the status of the invoice you’ve just applied the credit memo to. It should now show as “Paid” or “Closed.”

References