Let me elaborate on some details to clear out things that may cause you confusion, afsmith.
Typically, the seller records a credit memo as a reduction of its accounts receivable balance, while the buyer records it as a reduction in its accounts payable.
Apart from this, we're unable to link a credit memo to a bank transaction since a credit memo can never be posted to a bank account.
With this, the only option that you can do is to either create a sales receipt or record a bank deposit, as @Kevin_C provided and illustrated above. To create a sales receipt, follow the steps outlined below:
- Go to + New, then select Sales receipt.
- From the Customer ▼ dropdown, choose a customer.
- From the Select a product/service ▼ dropdown, pick the product or service that you sold.
- (Optional) You can edit your line item’s quantity or rate in the Qty and Rate field.
- Fill out the other necessary fields in the sales receipt, then hit Save.
For more information on how to enter bank deposits, check out this article for the process: Record And Make Bank Deposits In QuickBooks Online. Aside from that, you may want to check the screenshots in the previous reply for your visual reference.
Moreover, learn from this article how QuickBooks downloads and suggest categories for transactions. This will help you identify tax deductions and tells you where your business makes and spends money: Categorize Online Bank Transactions In QuickBooks Online.
Reach out to us if you need help when entering customer payments. We're always right here to further assist you.
