Issue a credit memo

A credit memo reduces what you billed. Use it when you shipped less than invoiced, gave a discount after the fact, or need to lower the balance without rewriting the original invoice.

It is not a customer payment. Cash does not move.

Start from the invoice

1. Open All pages in the left sidebar, then under Sales click Invoices.
2. Open the invoice.
3. Click More invoice actions, then Issue credit memo.

Build the credit

1. Set the Credit memo date. It must fall in an open period.
2. Type an Internal reason. This is saved in Activity. The customer does not see it.
3. Tick only the items you are crediting, and set the quantities.
4. Leave Apply available credit to this invoice off unless you want this invoice's balance reduced right away. Any leftover stays available for a later invoice.
5. Click Review impact.

Review, then issue

You will see the drop in revenue, sales tax, and what the customer still owes.

1. Read the totals.
2. Tick I reviewed the revenue, tax, A/R, and customer-credit impact.
3. Click Issue credit memo.

The original invoice stays as it was. BooksGPT adds the credit on top, so the history is still there.

Apply a credit later

If you did not apply it when you issued it:

1. Open the invoice the customer still owes on.
2. Click Apply credit.
3. Pick the credit memo, review the effect, and confirm.

This only reduces what they owe. It does not record money in the bank.

Good to know

• To record cash the customer sent, use Record payment on the invoice. See "Create, send, and get paid on an invoice".
• Customers cannot pay by card through BooksGPT. Collect payment your usual way, then record it.
• Invoices imported from QuickBooks are managed there. Issue the credit in QuickBooks, then import again.

Updated on: 17/08/2026