Learn what happens when a credit memo is created in QuickBooks or by Novi AMS.

When a credit memo is created, the following happens:

• The revenue for the specified item decreases.

• The outstanding receivable is reduced.

• In most cases, QuickBooks will automatically create a zero-Dollar payment to link the credit memo with the outstanding invoice.

Related QuickBooks Tutorial:

• Learn how to create a credit memo in QuickBooks >

Related Articles:

• How to Create a Credit Memo Report

• Difference between a Credit Memo and a Refund Receipt