The credit memo doesn't affect your bank account, so we'll have to record it separately from the deposit, akwegs. Let me discuss further details to address this matter.

You can create a bank deposit for the payment you received and apply it to the invoice. Make sure to add customers A and B with $250 (total of $500) for each line, then post it under Accounts Receivable.

Here's what it looks like:



Once done, link it to the invoice with these steps:

1. Click + New, then Receive payment.
2. From the Customer dropdown, select the customer’s name. This displays all unpaid and outstanding credits for your customer.
3. In the Payment date field, enter the day you received the payment.
4. From the Outstanding Transactions section, select the invoice or invoices you need to mark as paid.
5. Click Credits section, select the deposit.
6. Select Save and close.

For the credit memo, record it separately for Customer C and then transfer the credits to A and B since applying it from one customer to a different invoice of another customer is not possible.

Ensure to reconcile your account regularly to maintain an accurate balance between your bank statement and QuickBooks.

If you have more questions about applying transactions, revisit this thread or start a new one. We're here to help and give you the support you need.