Correctly Enter and Apply Credit Memos

A credit memo reduces an amount that has already been invoiced. It is critical that you use the same class as the invoice and that you apply the credit to the invoice. Unless you apply the credit memo to the invoice, in Chronicle you will still see the customer as having an outstanding balance even though the customer is paid in full. For example, suppose you invoiced the customer for $2,200, and then agreed to a change in the work that reduced the amount owed to $2,000. If you added a credit memo for the $200 difference without applying it to the invoice, in Chronicle, you would see that the customer had a $200 outstanding balance due. If you looked at the credits column, you’d see that the customer also had a $200 credit. Once you apply the credit, the customer will have a zero balance, which is what you want.