To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.
Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm.
Now let's get started with the exercise. First, we'll need to create the credit memo.
2
Click "+New".
3
Click "Credit memo".
4
In the Customer field, select "Bill's Windsurf Shop".
5
On the first line, under Product/Service, select "Pest Control".
6
In the Description field, type "Refund and reapply next week".
7
Click the "down arrow" next to Save and send, then select "Save and close".
Let's see how this has been applied to Bill's open invoice.
8
From the left navigation bar, hover over Sales, then click "Customers".
9
Click "Bill's Windsurf Shop".
You may need to close a pop-up.
(1) Note that the Credit Memo transaction displays in the list of Bill's transactions. (2) Also note that the Credit Memo has been converted to a Payment by QBO (see Memo field). We'll look at this more closely in the next step.
10
Click "1027".
The Invoice
Notice that the invoice reflects a payment of $35.00. Let's take a closer look at that payment.
11
Click "View payment #176".
This is the Payment transaction that QBO automatically created when you saved the Credit Memo. Note that the payment was automatically applied to Invoice 1027.