Thanks for joining this conversation, @WRI_2110.

That's a great question! Allow me to chime in and share additional information about processing credit memos in QuickBooks Desktop (QBDT).

When creating a credit memo, there will be a pop up message after saving it. It will ask what would you like to do with this credit, and you have three options to choose from. Among these are:

• Retain as an available credit. QuickBooks enters a negative amount in your Accounts Receivable (A/R) register for the credit memo. You can use this credit as payment for another transaction. If you chose to retain as available credit, you'll see the available credits in the customer payment window.
• Give a refund. You can issue the refund in cash or a check. If your customer used a credit card, learn how to refund a credit card payment.
• Apply to an invoice. QuickBooks opens the Apply Credit to Invoices window. Select an invoice you want to apply this credit to.

Just make sure to select the Give a refund option instead so the negative amount in the overall balance won't be double.

For more information about managing credit memo, consider checking out this article and proceed to Option 2: Give a refund section: Give your customer a credit or refund in QuickBooks Desktop for Windows.

You can also visit our website for more tips and other resources you can use in the future: Self-help articles.

Please post again or leave a comment in this thread if you have additional questions about this or anything else QuickBooks. I'll be happy to answer them. Take care always.