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sometimes in our business we have to issue credits to customers this happens for a variety of reasons before we issue a credit to a customer lets review the settings to do this go to the gear icon and then click account and settings click advanced and then in the automation section click to edit youll notice the setting called automatically apply credits this makes sure that whenever you enter a credit quickbooks applies that credit against the oldest outstanding invoice in this example were going to disable this setting so we can show you more detail about how to apply a credit against a specific invoice click save and then click done our customer benjamin young has called to tell us that he did not receive the number of services indicated on his invoice and would like a credit for one snowman removal service for two hundred and fifty dollars to do this were going to create a credit memo and then apply it against an outstanding invoice to get started click new and then under cust