Wow, we are making progress. One more transaction and another shoebox down. Let's see what's left. Here is a good one. It looks like a frequent customer paid for a job, but then canceled last minute. Rather than giving the customer a refund, Lu just applied the amount to the next job, just like a store credit. This is called a credit memo, and it's a pretty simple process when using QuickBooks. Take a look. This is Mark from the QuickBooks team. You can easily issue credit to your customers in QuickBooks Online. You might want to do this because you need to reduce a customer's invoice for some reason, or you might want to give a customer credit because they're a good customer. Note the difference between credit and a refund, is a refund happens when you need to send money back to a customer. A credit is when you want to reduce what they owe you either now or in the future. To give customers credit, you'll create a credit memo. Let's go over how to create a credit memo, send it to a customer, and then apply that credit to an invoice. To start, select "New" and "Credit Memo", or "Give Credit", depending on your view. Select the customer you want to give credit to, then select the products and services you want to give them credit for, then the amount of the credit you want to give them. You can also select "+ Add New", and create a credit item that doesn't have a specific price. Anytime you add it to a credit memo, you can fill in the amount you want to credit your customer's account. If you want to send a copy of the credit to your customer, select "Save and Send". Otherwise, you can select another save option, so QuickBooks records the credit. We'll select "Save and Send" for this option. You see the PDF version of the credit memo that your customer will receive here. If everything looks good, select, "Save and Close", and your credit memo is on its way. Now, let's go over how to apply a credit memo to an invoice. If your customer already has an open invoice with you, then this happens automatically. To see this, go to your customer list, find your customer and the open invoice, select it and you can see QuickBooks has applied the credit memo to the open invoice. What happened is QuickBooks automatically created this payment transaction here to apply the credit memo to the oldest open invoice. However, if your customer has multiple open invoices and you want to apply this credit to a different one, just select the payment, then select the invoice you want to apply it to and enter the amount. Make sure this matches the amount of the credit memo. Once everything looks good, "Save", and then confirm. If your customer doesn't have an open invoice, then the credit will automatically be applied to their next invoice. Let's take a look. Just create a credit memo for your customer. Then when you create a new invoice for your customer, you will see that QuickBooks has applied the credit to your new invoice. That's it. Now, you can create credit memos for your own customers.