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.

In the Customer field, select "Bill's Windsurf Shop".

On the first line, under Product/Service, select "Pest Control".

In the Description field, type "Refund and reapply next week".

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.

From the left navigation bar, hover over Sales, then click "Customers".

(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.

Notice that the invoice reflects a payment of $35.00. Let's take a closer look at that payment. 

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.

QuickBooks

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

app.qbo.intuit.com

fastandeasyqbo.com

Scenario: Craig recently did some pest control work for Bill's Windsurf Shop for $35, along with his regular weekly gardening. Later, Bill called to complain that they were still experiencing a pest problem, so Craig agreed to credit the last application and do another one the next time he comes by.  

Create the credit memo and apply it to Bill's invoice.

3.2 Create and Apply a Credit Memo

The Invoice