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customer credit memos reduce the amount owed by a customer and can be applied to a specific invoice if that invoice has already been entered and validated credit memos are similar to invoices as they use the same function as the sales invoice but are entered using the credit entry transaction screen and have an invoice type of CRM a credit memo can be matched to a single invoice or entered against multiple invoices and all amounts are entered as positive amounts lets take a look at creating a credit memo for sales invoice in your system to enter in a credit memo against a sales invoice select the invoice function under the sales menu select the full entry credit transaction entry screen to create a new credit memo click new in the right-hand panel I am going to be entering in a credit memo against fun times and invoice number two they ordered too many sprockets my sale site is nao 1/2 and notice that my invoice type comes in as CRM for credit memo Ill enter in my reference and enter