Let's say I have a client that pre-pays $10,000 paid by check for pre-paid IT consulting service at the beginning of each year. So I create a Sales Receipt for $10,000 for the customer.

Since this is a pre-paid credit to be applied later, then I create a Credit Memo for the $10,000.

For the next 10 months, I Invoice the customer $1,000 monthly for my IT consulting service and then apply Payment for the Invoice from the Credit Memo balance. Throughout the year there will be other invoices for other sales and services to the customer with separate payments by check and credit card.

I'm using QBO.

• I need a Monthly report to send to the customer that shows:
• The $10,000 sales receipt paid by check at the beginning of the year
• The $10,000 initial credit memo
• The invoices for which ONLY credit was applied
• The applied credit memo payments for the invoices
• The remaining credit memo balance

*** I don't want to show any other invoices or payments that are not related to the credit memo!

Basically, a Credit Memo history and transaction report with remaining credit memo balance.

If QBO cannot handle this, then I guess I'll have to manually create this report in Excel.