You can easily issue credit to your customers in QuickBooks Online. You might want to do this because you need to reduce a customer’s invoice for some reason. Or you might want to give a customer credit because they are a good customer.
Note that the difference between credit and a refund is a refund happens when you need to send money back to a customer. A credit is when you want to reduce what they owe you – either now or in the future.
To give customers credit, you’ll create a credit memo. Let’s go over how to create a credit memo, send it to a customer, and then apply that credit to an invoice.