Creating the Credit Memo
Create a new Invoice
Make the line item type: OTHER
Type in the Description: Credit Memo
Input the credit as a negative $ amount in the Price field
Add notes to the Memo Section
Save
How to Apply the Credit Memo
Create a new Payment
Choose a Payment Method, Then choose Pre-Paid Credit - ($ Amount)
Using the checkboxes, select the Invoices you want your credit to apply to
Save & Apply
How to send a document titled: Credit Memo (Instead of Invoice)
**You must first create a new Document Template titled Credit Memo and set it up to suit your preferences**
Edit/View the Invoice that you've created for this credit
Click the drop down to the right of Email or Print - Select Credit Memo
Make any edits, and Send.
NOTE: If Settings > Invoices > Automatically apply credit balance = YES. The system will not auto apply a credit memo.