We do progressive invoicing and I over-invoiced the estimate and need to refund the client the overpayment. How do I create the credit memo so it links with the estimate?

Hi there, Rae16. I'm here to assist you with handling an overpayment from your customer.

Before we proceed, please note that credit memos can only be linked to invoices, not directly to estimates, as estimates are non-posting transactions.

Once your customer has received an invoice, you can then create a credit memo and apply it to future invoices using the Receive Payment feature.

Here's how to create a credit memo:

1. Navigate to + New and select Credit Memo.
2. Select the customer's name.
3. Enter the relevant Product/Service items you are refunding.
4. Input the refund amount in the Amount column.
5. Add a memo or description to explain the reason for the credit, such as "Refund for overpayment of progressive invoicing."
6. Set the appropriate date for the credit memo.
7. Confirm that the account and tax settings match the original invoice.
8. Click Save and close.

Apply the Credit Memo to the invoice:

1. Navigate to + New and select Receive Payment.
2. Choose the customer's name and select the invoice under Outstanding Transactions.
3. Select the credit memo under Credits.
4. Enter the amount to be applied.
5. Click Save and close to apply the credit to the invoice.
   
    

Refer to the photo below on what a credit memo looks like when applied to an invoice using the Receive Payment feature:

If you still require further assistance, please don't hesitate to post below.