How do we link invoices to credit memos? how the credit memo to be linked to its specific invoice? Thanks

Hi athar123,

It's great to see you here in Community  Welcome!  In QuickBooks Online, you can manually apply a credit memo to an invoice or have it automatically applied to open invoices and customer balances.  I'd be happy to help!

In this case, you've indicated that a credit memo has been created and we just need to manually link it to the invoice.  This can be done by following these steps:

1. From the left navigation bar click + New

2. Select Receive payment

3. In the Customer dropdown, choose the customer

4. In the Outstanding Transactions section, checkmark the open invoice you want to apply the credit memo to

5. The Credits section will list all memos created for this customer, select the item to be applied

6. Inn the Payment column, enter how much of the credit you want to use

7. Leave the Payment Method, Reference no, Deposit to, and Amount received fields blank

8. Fill out the rest of the form, including the Payment date

9. Make sure the total is correct after applying the credit memo

10. When you're done, select Save and close

You've successfully applied the credit!

If you'd like QuickBooks to automatically apply credit memos moving forward, you can turn on the auto-apply feature in your Settings by following these steps:

1. Go to the Gear icon in the top right corner of your account and select Account and settings

2. Click on the Advanced tab

3. Select the Edit ✎ in the Automation section

4. Choose Automatically apply credits

5.  Hit Save, then Done

For your reference and additional information about Credit Memos, click here.

If you have any additional questions or concerns, please don't hesitate to reach back out.  We'd be glad to assist!