Credit Memo

Written by Sydney Henderson

Last published at: September 21st, 2021

A negative invoice is a Credit Memo. If an invoice is created that is not paid and will not get paid you can create a credit memo to remove the receivable. The credit memo is typically a mirror of the invoice. The credit memo must be from the same profile, the same account, and the amount is the same as the invoice except negative. Once saved and posted you can apply the balance to the invoice.

  1. This is the invoice that is not paid and will not get paid.
  2. Click Create.
  3. Choose the customer that matches the invoice from step 1. 
  4. Enter the Invoice Date and Fund in the Create Invoice table. You may also add an attachment. 
  5. Enter the Description, Qty (Quantity), Unit Price and Revenue Account in the Items table. The Unit Price needs to be a negative of the matching invoice from step 1.
  6. Click Save.
  7. Click Post.
  8. Click Apply Balance.
  9. Check the box next to the credit memo to apply the full amount to the open invoice.
  10. Click Apply.