What is The Procedure for Creating a Credit Memo in QuickBooks Online?

create a credit memo in QuickBooks


Are you new to QuickBooks Online and are seeking for a procedure to create a credit memo in the accounting program. The procedure is quite simple and requires your familiarity with a certain set of steps. In this brief discussion, we shall go for a rudimentary description of credit memo and the steps to create a credit memo in QuickBooks Online.

What is Credit Memo?

A credit memo refers to the credit applied to future invoices. It is tantamount to returning items to some store and in lieu of that, getting some credit in the store. Users cannot avail of their cash back but instead can make use of the credit for purchases in the store.

Steps to Create a Credit Memo in QuickBooks Online?

  • Initially, hit on the “+New” option.

  • Go to Customers, and then hit on the Credit memo option.

  • Provide the necessary details in the credit memo section.

  • Hit on Save and Close

  • Search for the invoice pertaining to the credit memo.

  • Hit on the Receive Payment option.

  • This window shows the Outstanding Transactions as well as the Credits. 

  • Check both the invoice and the credit memo.

  • Hit on Save and Close.

  • Notably, users can make use of some different Products in their credit memo. As a precedent, users can go for the creation of a credit product and use the same while crediting customers. 

  • In the Sales page, invoice status shall show a Paid status.

  • Also, the credit memo should be closed.

What if I Forgot that the Invoice was Paid?

  • If users forget that their invoice was paid with a credit memo, they can easily figure it out.

  • At first, open the invoice.

  • After that, hit on the blue payment link in the Payment Status.

  • The payment will show up. 

  • Check how this payment was being made in QB Online.

  • Hit on the Date and then check the Receive Payment screen.

  • It will reveal the Credit Memo used for paying the invoice.


The current blog highlighted all the easy steps to create a credit memo in QuickBooks Online. For ancillary assistance, you may call our QuickBooks technical Support staff at the helpline at +1-800-615-2347.

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